Esprit expects to report H1 loss and revenue decline

Based on the unaudited results for the six month period, Esprit Holdings Limited expects to record an unaudited loss of approximately 715 million Hong Kong dollars.

The company had reported a profit of 13 million Hong Kong dollars for the same period of 2022.

The company’s board considers that the significant loss is mainly attributable to the decrease in revenue, which also led to the decrease of gross profit by 18.5 percent to approximately 1,352 million Hong Kong dollars.

The group is expected to record total revenue of approximately 3,025 million Hong Kong dollars for the interim period a decrease of approximately 16.6 percent.

The company has attributed the decrease in revenue to negative consumer sentiment in Germany and across the rest of Europe resulting from the poor economic environment and the continuing conflict in Ukraine. The company said in a release that the performance was also affected by the short-term adjustments stemming from brand elevation and repositioning in the fashion industry.

Esprit has implemented several initiatives to drive growth over the past half year and the management estimates these initiatives to come to fruition in the second half of this year. In the second half of this year, the company will launch the New York retail store, a new collection with superior quality and design, together with a new denim line developed by the group’s new innovative centre in Amsterdam.