Esprit : Unaudited FY13/14 Third Quarter Update

H o n g K o n g E x c h a n g e s a n d C l e ar i n g L i m it e d a n d T h e S t o c k E x c h a n g e o f H o n g K o n g L i m i t e d t a k e n o r e s p o n s i bi l it y f o r t h e c o n t e nt s of t h i s a n n o u n c e m e nt , m a k e n o r e p r e s e n t a t i o n a s t o i t s a c c u r a c y o r c om p l et e n e s s a n d e x p r es s l y di s c l a i m a n y l i a b i li ty w h a t s o e v e r f o r a n y l o s s h o w s o e v e r a r i s i n g f r o m o r i n r e li a n c e u p o n t h e w h o l e or a n y p a r t of t h e c o n t e n t s o f t hi s a n n o u n c e m e nt .

The b oard o f d irec tors (the "Board") of Es prit H old ings Lim ited (the "Co mp any ") pres ents the unaud ited F Y13/14 third quarter u pdate of th e Com pany and its s ubs idiaries for the nine mo nths e nde d 3 1 Marc h 2014. This ann ounc emen t is made purs uant to Part XIVA o f th e Sec urities and Fu tures Ordinanc e (Chapter 5 71 o f th e Laws of H ong Kon g) a nd Ru le 13 .09 of th e Rules Gov erning the L is tin g of Sec uriti es on The Stoc k Ex c hang e o f H ong Kon g Li mite d.

For the 9 months ended 31 March

2014 2013 Change in %

Product Divisions HK$ million

% of Group

Turnover HK$ million

% of Group

Turnover HK$

Local currency

w omen 7,859 41.7% 7,983 39.4% -1.6% -5.1% women casual ^ 5,374 28.5% 5,573 27.5% -3.6% -7.0% women collection 2,188 11.6% 2,257 11.1% -3.0% -6.7% trend 297 1.6% 153 0.8% 93.8% 85.9% men 2,834 15.0% 3,259 16.1% -13.0% -16.1% men casual ^ 2,235 11.8% 2,534 12.5% -11.8% -14.8% men collection 599 3.2% 725 3.6% -17.3% -20.4% edc 4,350 23.1% 4,849 23.9% -10.3% -13.8%

others * 3,819 20.2% 4,181 20.6% -8.7% -12.2%

Total 18,862 100.0% 20,272 100.0% -7.0% -10.4%

^ Turnover of denim has been re-grouped into women casual and men casual for the nine months ended 31 March 2014 and the nine months ended 31 March 2013

* Others include shoes, accessories, bodywear, kids, sports, licensing income & licensed products such as timewear, eyewear, jewelery, bed & bath, houseware etc.

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For the 9 months ended 31 March

2014 2013 Change in %

Key Distribution Channels HK$ million

% of Group

Turnover HK$ million

% of Group

Turnover HK$

Local currency

Retail# 11,498 61.0% 11,856 58.5% -3.0% -6.2% Europe 8,552 45.3% 8,285 40.9% 3.2% -1.5% Asia Pacific 2,411 12.8% 2,881 14.2% -16.3% -15.3% Subtotal 10,963 58.1% 11,166 55.1% -1.8% -5.1%

Store closures and

stores with onerous contracts* 535 2.9% 690 3.4% -22.5% -25.4%

Wholesale 7,221 38.3% 8,268 40.8% -12.7% -16.5% Europe 6,612 35.1% 7,155 35.3% -7.6% -11.7% Asia Pacific 609 3.2% 1,055 5.2% -42.3% -44.4% North America - - 58 0.3% -100.0% -100.0%

Licensing 141 0.7% 135 0.6% 4.4% 3.5%

Others 2 0.0% 13 0.1% -83.7% -84.4%

Total 18,862 100.0% 20,272 100.0% -7.0% -10.4%

# Retail sales include sales from e-shop in countries where available

* Represent store closures and stores with onerous contracts announced in prior financial year(s)

Retail Distribution Channel by Regions (Directly Managed Retail Stores)

As at

31 March 2014

Movement since

1 April 2013

Movement since

1 July 2013

As at

31 March 2014

No. of

Net sales

Year-on-year net change in

Year-on-year change in net

Net change Net change in no. of in net sales

No. of

Regions

stores

area m2

no. of stores

sales area

stores

area

comp-stores*

Europe 306 202,220 (19) 0.6% (18) -0.1% 231

Asia Pacific 568 103,449 (94) -9.9% (71) -8.4% 269

Subtotal 874 305,669 (113) -3.2% (89) -3.1% 500

Store closures and

stores with onerous contracts** 54 31,783 (11) -17.1% (7) -9.1% n.a.

Total 928 337,452 (124) -4.7% (96) -3.7% 500

* All e-shops within Europe and the e-shop in China are shown as 1 comparable store in Europe and 1 comparable store in

Asia Pacific

** Represent store closures and stores with onerous contracts announced in prior financial year(s)

n.a. Not applicable

As at 31 March 2014

Movement since

1 April 2013

Movement since

1 July 2013

No. of stores

Net sales area m2

Year-on-year net change in no. of stores

Year-on-year change in net sales area

Net change in no. of stores

Net change in net sales area

Franchise stores 1,496 297,025 (323) -15.6% (210) -11.6% Europe 850 209,729 (109) -13.4% (70) -9.7% Asia Pacific 646 87,296 (214) -20.4% (140) -15.9%

Shop-in-stores 4,119 151,882 (378) -9.5% (288) -7.3% Europe 4,024 149,779 (367) -9.4% (277) -7.1% Asia Pacific 95 2,103 (11) -19.1% (11) -19.1%

Identity corners 2,685 56,665 (641) -19.2% (450) -14.6% Europe 2,685 56,665 (641) -19.2% (450) -14.6% Asia Pacific - - - - - -

Total 8,300 505,572 (1,342) -14.3% (948) -10.7%

Europe 7,559 416,173 (1,117) -12.9% (797) -9.5% Asia Pacific 741 89,399 (225) -20.4% (151) -15.9%

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For the 9 months ended 31 March

2014 2013 Change in % Retail comp-

Regions HK$ million

% of Group

Turnover HK$ million

% of Group

Turnover HK$

Local currency

store sales growth*

Europe 15,189 80.5% 15,463 76.3% -1.8% -6.2% -4.6% Asia Pacific 3,021 16.0% 3,949 19.5% -23.5% -23.3% -6.6%

Subtotal 18,210 96.5% 19,412 95.8% -6.2% -9.7% -5.0% Store closures and

stores with onerous contracts* 535 2.9% 690 3.4% -22.5% -25.4% n.a. North America 117 0.6% 170 0.8% -31.1% -31.1% n.a.

Total 18,862 100.0% 20,272 100.0% -7.0% -10.4% -5.0%

* Represent store closures and stores with onerous contracts announced in prior financial year(s)

n.a. Not applicable

For the 3 months ended 31 March

2014 2013 Change in %

Key Distribution Channels HK$ million

% of Group

Turnover HK$ million

% of Group

Turnover HK$

Local currency

Retail# 3,513 58.0% 3,754 55.9% -6.4% -9.0% Europe 2,582 42.7% 2,609 38.9% -1.0% -5.0% Asia Pacific 782 12.9% 956 14.2% -18.2% -16.8% Subtotal 3,364 55.6% 3,565 53.1% -5.6% -8.2%

Store closures and

stores with onerous contracts* 149 2.4% 189 2.8% -21.2% -24.2%

Wholesale 2,496 41.3% 2,912 43.3% -14.3% -17.4% Europe 2,366 39.1% 2,602 38.7% -9.1% -12.4% Asia Pacific 130 2.2% 310 4.6% -58.1% -59.3%

Licensing 43 0.7%

Others - -

Total 6,052 100.0% 6,718 100.0% -9.9% -12.7%

# Retail sales include sales from e-shop in countries where available

* Represent store closures and stores with onerous contracts announced in prior financial year(s)

F o r t h e q u a r t e r e n d e d 3 1 M a r c h 2 0 1 4 ( " 3 Q F Y 1 3 / 1 4 " ) , G r o u p t u r n o v e r a m o u n t e d t o H K $ 6 , 0 5 2 m i l l i o n ( 3 Q F Y 1 2 / 1 3 : H K $ 6 , 7 1 8 m i l l i o n ) , r e p r e s e n t i n g a d e c l i n e o f - 9 . 9 % w h e n c o m p a r e d w i t h t h e s a m e p e r i o d l a s t y e a r ( - 1 2 . 7 % i n l o c a l c u r r e n c y ) . T h e d e c l i n e w a s i n l i n e w i t h t h e - 1 0 . 7 % y e a r - o n - y e a r r e d u c t i o n i n t o t a l c o n t r o l l e d s p a c e ( w h o l e s a l e a n d r e t a i l c o m b i n e d ) w h i c h r e s u l t e d f r o m t h e r a t i o n a l i z a t i o n o f w h o l e s a l e c u s t o m e r b a s e a n d t h e c l o s u r e o f u n p r o f i t a b l e r e t a i l s a l e s a r e a t o e n h a n c e p r o f i t a b i l i t y . T u r n o v e r d e c l i n e d m o r e t h a n t h e r e d u c t i o n i n c o n t r o l l e d s p a c e f o r t h e q u a r t e r m a i n l y d u e t o : ( i ) c a l e n d a r e f f e c t w i t h t h e s h i f t o f E a s t e r h o l i d a y a n d t h e m i d - s e a s o n s a l e t o A p r i l t h i s y e a r f r o m M a r c h l a s t y e a r ; a n d ( i i ) w e a k e r t h a n e x p e c t e d p e r f o r m a n c e i n o u r A s i a P a c i f i c r e g i o n .

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a s a r e s u l t o f o u r s t r a t e g i c i n i t i a t i v e t o e x p a n d t h e o u t l e t c h a n n e l , b u t t u r n o v e r o f t h e C o r e R e t a i l o p e r a t i o n s d e c l i n e d b y - 1 . 0 % y e a r - o n - y e a r ( - 5 . 0 % i n l o c a l c u r r e n c y ) , m a i n l y d u e t o t h e c a l e n d a r e f f e c t a n d t h e h i g h l y p r o m o t i o n a l a n d c o m p e t i t i v e m a r k e t e n v i r o n m e n t r e s u l t i n g i n w e a k e r c u s t o m e r t r a f f i c . U n f o r t u n a t e l y , w e a r e s e e i n g w e a k e r p e r f o r m a n c e i n A s i a P a c i f i c a n d i t s C o r e R e t a i l o p e r a t i o n s r e c o r d e d a t u r n o v e r d e c l i n e o f - 1 8 . 2 % y e a r - o n - y e a r ( - 1 6 . 8 % i n l o c a l c u r r e n c y ) , m a i n l y d u e t o r e d u c t i o n i n r e t a i l n e t s a l e s a r e a ( - 9 . 9 % y e a r - o n - y e a r ) a n d l o w c u s t o m e r t r a f f i c .
F o r t h e f i r s t 9 m o n t h s o f t h i s f i n a n c i a l y e a r F Y 1 3 / 1 4 , R e t a i l t u r n o v e r h a s d e c l i n e d b y - 3 . 0 % w h e n c o m p a r e d w i t h t h e s a m e p e r i o d l a s t y e a r ( - 6 . 2 % i n l o c a l c u r r e n c y ) , s t i l l s l i g h t l y a b o v e t h e - 4 . 7 % y e a r - o n - y e a r r e d u c t i o n i n n e t s a l e s a r e a .

- 1 4 . 3 % y e a r - o n - y e a r r e d u c t i o n i n c o n t r o l l e d w h o l e s a l e s p a c e . I n E u r o p e , t h e
y e a r - o n - y e a r d e c l i n e i n w h o l e s a l e t u r n o v e r o f - 9 . 1 % ( - 1 2 . 4 % i n l o c a l c u r r e n c y ) w a s o v e r a l l i n l i n e w i t h t h e c o r r e s p o n d i n g r e d u c t i o n o f c o n t r o l l e d w h o l e s a l e s p a c e ( - 1 2 . 9 % y e a r - o n - y e a r ) . I n A s i a P a c i f i c , t h e w h o l e s a l e o p e r a t i o n s w e r e n e g a t i v e l y i m p a c t e d b y t h e l a r g e r l o s s o f c o n t r o l l e d w h o l e s a l e s p a c e ( - 2 0 . 4 % y e a r - o n - y e a r ) , a n d a l s o t h e f o c u s o n a n a m b i t i o u s c l e a r a n c e o f a g e d i n v e n t o r y f o r o u r w h o l e s a l e p a r t n e r s . A s a c o n s e q u e n c e , t h e y e a r - o n - y e a r d e c l i n e i n w h o l e s a l e t u r n o v e r i n A s i a P a c i f i c o f - 5 8 . 1 % ( - 5 9 . 3 % i n l o c a l c u r r e n c y ) w a s m u c h h i g h e r t h a n t h e c o r r e s p o n d i n g r e d u c t i o n i n c o n t r o l l e d w h o l e s a l e s p a c e .
F o r t h e f i r s t 9 m o n t h s o f t h i s f i n a n c i a l y e a r F Y 1 3 / 1 4 , W h o l e s a l e t u r n o v e r w a s
- 1 2 . 7 % l o w e r t h a n t h a t o f t h e s a m e p e r i o d l a s t y e a r ( - 1 6 . 5 % i n l o c a l c u r r e n c y ) . T o t a l t u r n o v e r o f t h e G r o u p f o r t h e n i n e m o n t h s e n d e d 3 1 M a r c h 2 0 1 4 a m o u n t e d t o H K $ 1 8 , 8 6 2 m i l l i o n , r e p r e s e n t i n g a d e c r e a s e o f - 7 . 0 % y e a r - o n - y e a r ( - 1 0 . 4 % i n l o c a l c u r r e n c y ) .
B y O r d e r o f t h e B o a r d F l o r e n c e N g W a i Y i n C o m p a n y S e c r e t a r y
Hong Kong, 30 Apri l 2014

As at the da te o f th is anno unc em en t, t he Bo ard c o mpris es (i) Mr J os e Man ue l Martínez G utiérrez (Group Chief Ex ec utiv e Offic er) and Mr Tho mas Tang W ing Yu ng (Group Chi ef Fi nanc ial Off ic er) as Ex ec utiv e Direc tors ; (i i) Mr J ürgen Alfred Rud olf Friedric h as Non-ex ec utiv e Direc tor; a nd (ii i) Mr Ray mond Or Ch ing Fai (Chair man), Mr P aul Ch eng M in g Fu n (De puty Cha irman), Mrs Ev a Ch eng Li Ka m F un, Mr A lex ander Re id Ham il ton , Mr Carmelo Lee Ka Sz e and Mr N orb ert Ad ol f Pl at t as Inde pen dent N on-ex ec utiv e Direc tors .

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