Esprit Holdings Limited provided consolidated earnings guidance for the eleven months ended 31 May 2018. For the period, the company's management currently expects the group to record a loss before interest and taxation in the range of approximately HKD 2,170 million to HKD 2,270 million for the full financial year ending 30 June 2018 as compared to a LBIT of HKD 102 million in the same period last year. The anticipated LBIT is mainly attributable to the following non-recurring provisions and impairments resulting from management's assessment of the fair values of the assets of the Group, and an expected operating loss of the underlying operation s, as follows: As reported in the interim results for the six months ended 31 December 2017, due to the significant decline of its business in China in recent years, there was a full impairment of the remaining balance of the goodwill and customer relationships in association with the China operations of the Group of HKD 794 million before taxation. This impairment is a non-cash item, Additional provisions and impairments due to the weaker than expected sales performance of directly managed retail stores for the financial year ending 30 June 2018. Additional provision for inventory, estimated to be in the range of HKD 80 million to HKD 90 million arising from a change in the estimation methodology to reflect more appropriately the net realiz able value of aged inventories; Impairment in the range of HKD 30 million to HKD 35 million in association with obsolete SAP applications that have been capitalized but are no longer in use due to change in internal processes; and A larger than expected operating loss as a result of higher than expected decline in the Group's revenue primarily due to decline of customers traffic to its brick and mortar stores. As a result, LBIT before the Non-recurring Provisions and Impairments for financial year 2017-2018 is estimated to be in the range of HKD 900 million and HKD 950 million.