Esprit, the global fashion brand, has announced its expected return to profitability for the year 2021. The company disclosed in a stock exchange filing that it is projected to achieve a net profit of approximately HK$370 million (€43m/£36m/US$47m). This is a significant turnaround from the net loss of around HK$414 million it experienced in the six months leading up to December 31, 2020.

Although a direct comparison between the two periods is not possible due to Esprit adjusting its financial year dates, this will mark the first profitable year for the company since the 12 months ending June 30, 2017. Esprit attributes this turnaround to various factors, including improved sales, higher gross profit margins, cost control measures, improved inventory management, and growth in its e-commerce channel.

While Esprit is still finalizing its figures, it plans to publish its fully audited data on March 29, providing a more comprehensive overview of its financial performance. This news is a positive indication for a company that has faced considerable challenges in recent years, including the impact of the pandemic.

Despite these challenges, Esprit is optimistic about its future. Earlier this month, it announced that interim CEO William Pak will be assuming the role permanently. The company also revealed its finalized lineup for the leadership team this week, further underscoring its commitment to turn around and growth.

Joining the team as Chief Digital and Marketing Officer is Larry Luk, who brings senior marketing experience from previous roles at L’Oréal and Calvin Klein. The rest of the leadership team consists of CFO Brian Wong, Chief Product Officer Sang Langill, and longtime team member Leif Erichson, serving as President Europe.

Esprit has highlighted that its refreshed leadership team has already implemented various operational changes within the company. The board is confident in their capabilities and believes they will play a significant role in reinvigorating Esprit’s presence in the Asian market, including an ambitious expansion of its e-commerce presence.

William Pak, CEO of Esprit, expressed his optimism, stating, “We have now laid the foundation to breathe new life into our brand. Under our new collective vision, the team will tap into our wealth of experience as we journey into a new era of growth. We are going full speed ahead with our highly-anticipated comeback.”

The company intends to pursue a multi-dimensional business strategy, focusing on revitalizing products and experiences and delivering them through a new omni-channel ecosystem that offers more touchpoints. Esprit aims to build long-term customer relationships that inspire and foster a sense of community, while also remaining committed to making a positive impact on society and the planet.

Overall, Esprit’s return to profitability and the strengthening of its leadership team indicate a promising future for the brand. With its renewed vision and strategic approach, the company is well-positioned to regain its position in the fashion industry and drive growth in the coming years.

Useful links:
Esprit’s official website
Reuters