"sell" on a 37% share price pullback following the disappointing FY2011 results, and
maintained its target price of HK$10.2.
It believes that FY2012 should represent trough core earnings for Esprit on further
decline in wholesale revenue and as the group raises advertising spend and offers more
support to its wholesale partners.
Citi believes its margins should start to recover in FY2013.
The research house also now expects the Euro area to fall back into recession with
sovereign debt restructuring for Greece, Ireland and Portugal. (KL)