Esprit Models Fashion Comeback
What’s been the world’s best-performing major retail stock so far this quarter, after Uniqlo owner Fast Retailing? Gap? H&M? Based on Bloomberg Intelligence’s index of specialty apparel stores, it’s Esprit. Remember them? The Hong Kong-based chain looked like it had the world at its feet back in 2007. Sales were on track for their 15th consecutive year of double-digit growth, net income had risen fivefold in as many years and the company’s enterprise value was more than 17 times forecast Ebitda — well above H&M, Inditex and Fast Retailing. How the mighty have fallen. Esprit’s shares are now down 94 percent from their peak. Ten years ago, Bloomberg had recommendations on the stock from 22 equity analysts, with 19 rating it a buy. Nowadays, only seven are paying attention, and six of them suggest selling out. Read more at Bloomberg.
