Esprit, the lifestyle brand, has reported a decline in profits for the first half of the year. However, the company remains committed to investing heavily in its growth and sees this decline as a step in the right direction. The unaudited results did not come as a surprise, as Esprit had previously issued a profit warning. Despite the challenges faced, the company remains optimistic about its future prospects and aims to regain its position in the market.

CEO Pak William Eui Won acknowledged the difficulties experienced during the first half of the year but emphasized that the strategies and infrastructure outlined in the 2021 Annual Report have yielded consistent positive results and profitable growth. This provides a solid foundation for the company’s expansion into new markets. With a strong financial position, Esprit plans to continue investing in opportunities that arise.

Rebuilding the brand’s equity and improving its image are top priorities for Esprit. The company plans to achieve this through collaborations with reputable industry creatives, cross-brand partnerships, influencer design capsules, and sustainability events. Esprit also intends to enhance its digital presence by upgrading its European website’s trading ability, improving internal digital capabilities, establishing an innovative hub called Esprit Futura in Amsterdam, and launching website and digital commerce platforms in various regions.

Esprit’s strategy includes a focus on key Asian markets such as Hong Kong, Korea, Taiwan, and the Philippines. The company plans to reach customers through pop-up stores, proprietary websites, and partners’ portals. The goal is to position Esprit as an international brand with a strong presence and relevance. By improving product offerings, marketing strategies, and digital content, Esprit aims to regain its market position and achieve consistent sustainable growth.

In terms of financial results, Esprit confirmed that total revenue for the period was HK$3.626 billion, reflecting a 6% decline compared to the previous year. This decrease was primarily due to the depreciation of the euro against the Hong Kong dollar. However, on a constant currency basis, revenue would have increased by 2% to HK$3.934 billion. The gross profit margin for the period was 45.8%, slightly lower than the previous year’s figure of 46.9%.

As a result of the lower revenue and gross profit, the group’s unaudited profit attributable to shareholders stood at HK$13 million, a significant decrease from HK$121 million in the previous year. The decline in profits can also be attributed to foreign exchange translation losses of HK$99 million. Despite these challenges, Esprit remains determined to invest in its growth and rebuild its brand image. By focusing on new markets, digital expansion, and strategic repositioning in key Asian markets, the company aims to achieve consistent sustainable growth and reclaim its position as a leading international lifestyle brand.

For more information on Esprit’s future plans, visit Esprit’s official website. To learn more about the fashion industry and brand strategies, visit Business of Fashion.