Shares of clothing retailer Esprit Holdings dived in Hong Kong Monday, after the company guided for a loss for the first five months of the year.
The stock fell as much as 6.9% and was last down 5.2% at 55 Hong Kong cents.
The selloff came after Esprit, which has headquarters in both Hong Kong and Germany, said it expects to post a net loss of about HK$604 million (US$77.2 million) over January-to-May 2023.
The company had made a net profit of around HK$13 million for the period of January to June 2022.
Esprit attributed the expected loss to a decline in revenue, citing “negative consumer sentiment in Germany and across the rest of Europe resulting from the poor economic environment and the continuing conflict in Ukraine.”