Esprit shares slide 22% after its chief executive quits

An Esprit showroom Esprit's profits have been hurt by a falling demand in markets such as Europe

Related Stories

Shares of clothing retailer Esprit have fallen after the firm announced that its chief executive Ronald Van der Vis had quit.

His departure comes at a time when the firm has been trying to restructure its operations in a bid to improve its earnings.

Its shares fell up to 22% to HK$10.46 on the Hong Hong Stock Exchange.

Mr Van der Vis is the second senior executive to leave the company in the past few months.

In a statement to the Hong Kong Stock Exchange, Esprit said Mr Van der Vis was leaving for "personal and family reasons".

'Unclear'

Start Quote

With Mr van der Vis' departure, it is unclear if Esprit has sufficient management resources and capability to drive and manage its transformation plan”

End Quote Alice Hui DBS Group

The firm, which relies heavily on sales from Europe, has been going through a tough time amid a fall in consumer demand in the region as it grapples with economic problems.

In February, Esprit reported a 74% drop in its profits for the July to December period, from a year earlier.

As a result, the firm has announced plans to restructure its business model.

It has said it will shut all of its North American stores and shift its focus on increasing its presence in emerging economies in Asia, especially China.

However, analysts said that the departure of its chief executive had got investors worried about whether the firm will be able to carry out the restructuring plans in time.

"With Mr van der Vis' departure, it is unclear if Esprit has sufficient management resources and capability to drive and manage its transformation plan," said Alice Hui a retail analyst with DBS Group.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • RihannaCloud caution

    After celebrity leaks, what can you do to safeguard your photos?


  • Cesc FabregasFair price?

    Have some football clubs overpaid for their new players?


  • John CurticePolls analysis

    Professor John Curtice analyses the latest polls on the referendum


  • Woman and hairdryerBlow back

    Would banning high-power appliances actually save energy?


  • Rack of lambFavourite feast

    Is the UK unusually fond of lamb and potatoes?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.