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Esprit Shares Rise Most in Almost 4 Weeks as Executive Buys Stock
Vinicy Chan | November 23, 2011

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Hong Kong. Esprit Holdings, the biggest clothing retailer listed in Hong Kong, rose the most in almost a month on the city’s stock exchange after its chief financial officer increased his stake.

The stock climbed 6.3 percent, the most since Oct. 27, to 8.91 Hong Kong dollars at the close in Hong Kong trading. Esprit was the biggest gainer on the benchmark Hang Seng Index, which fell 2.1 percent.

Chief financial officer Chew Fook Aun bought 100,000 shares in the maker and retailer of casual clothing that has seen its stock plunge 93 percent from its peak in October 2007 as European rivals Hennes & Mauritz and Inditex’s Zara lured customers away.

The company, which two months ago said its brand had “lost its soul,” also published on its website a presentation from a meeting with investors on Tuesday.

“Senior management are buying shares with their own money, which is always heartening to see,” said Matthew Marsden, head of Hong Kong and China consumer research at Daiwa Securities Capital Markets.

“The presentation shows that management has a clear road map of how they intend to revitalize the brand in the next three years,” he said.

Esprit posted a 98 percent drop in net income in the last fiscal year because of the cost of closing stores in Europe and selling its US and Canada operations. Sales in the year through June increased less than 1 percent after declining in the previous two years, according to data compiled by Bloomberg.

Bloomberg