Esprit’s management shake-up goes on with the chief supply chain officer departure

New earthquake at Esprit’s management team. Juan Chaparro, chief supply chain officer and general manager of the group business in Asia Pacific, has left the company to undertake new professional challenges. The executive’s departure, which has already been communicated to the staff, comes just three months after José Manuel Martínez, a key piece in Chaparro’s appointment, left the position of chief executive officer.

Chaparro was part of Spanish dream team with prior experience at Inditex that Martínez, now chief of Spanish premium brand Bimba and Lola, created when he joined Esprit in 2012. The team also included Rafael Pastor, Elena Lazcanotegui and José Antonio Ramos. Pastor, the brands’ product chief, also left the group a few months ago.

In February 2013, Chaparro joined Esprit from Inditex, where he had been part of Trafaluc’s buying department, Zara’s collection for youngsters, during the previous three and a half years. At first, the Spanish executive held a position linked to the strategic direction of the group, but shortly after was appointed chief supply chain officer.

Juan Chaparro joined Esprit in 2013 from Inditex, where he worked in Zara’s buying department

During his years at the helm of this department, Chaparro has optimized Esprit’s supplier base and connected it with the product development teams. In addition, the manager has led the buying, sourcing, quality management and sustainability departments. Likewise, the executive has collaborated in strategic projects such as the merger of the different menswear divisions.

Last spring, Esprit reinforced Chaparro’s responsibilities, granting him the position of general manager of the Asia Pacific business, one of the most strategic regions for the group. The executive holds a degree in Business Administration and Management from Uned and a master’s degree in commercial management and marketing from Esic.

Esprit is immersed in a process of restructuring its global business, following the continued decline in sales registered in recent years and the increase in its losses. Last May, Esprit announced the closure of the 67 points of sale that it had in Australia and New Zealand to  cease operations in the region. Earlier this year, the company also reduced its presence in Hong Kong by closing two of its flagship stores in the Asian city.

Esprit expects to close the current fiscal year with losses close to 250 million euros

The group, which is listed on the Hong Kong stock exchange, ended the first half of the year with losses of 954 million Hong Kong dollars (99.2 million euros), compared to a net profit of 61 million dollars (6, 3 million euros) for the same period of the previous year. Revenues fell by 3.4% in the same period, to 8,039 million Hong Kong dollars (835.6 million euros).

For the whole fiscal year, Esprit expects to achieve record losses, which will range between 2.17 billion Hong Kong dollars and 2.27 billion Hong Kong dollars (240 million euros and 250 million euros) before taxes and fees. The company attributes the downward trend to impairments in the valuation of the group’s assets, besides a negative operating result justified by the decline of the business in China.

Since last March, when José Manuel Martínez left the group, Esprit is piloted by Anders Kristiansen. The new chief executive officer took over after piloting the business of the British chain New Look for five years.