Esprit, the international fashion brand, has recently released its financial results for the second half of 2020. The company has made a significant change in its reporting period, with its financial year now ending on December 31 instead of June 30. As a result, the latest results cover only a six-month period, making it difficult to compare them with the previous year.

Despite the challenges presented by the ongoing pandemic, Esprit has managed to reduce its losses slightly. This achievement can be attributed to the implementation of a comprehensive restructuring plan, which has helped mitigate the negative impact on the company’s retail and wholesale businesses. As part of this plan, Esprit has successfully canceled debts worth HKD 2.34 billion, which is equivalent to approximately €234 million. Additionally, significant cost-cutting measures have been taken to support the company’s financial stability.

For the 2020 financial year, Esprit recorded a loss of HKD 414 million, approximately €41 million. While this is still a substantial loss, it is significantly lower than the loss of HKD 3.992 billion from the previous financial year. However, the total revenue for the period decreased to HKD 885 million, approximately €88 million, following the deconsolidation of the group’s six German subsidiaries. These subsidiaries accounted for over 80% of Esprit’s consolidated revenue and market activity in the 2019-20 financial year.

Mark Daley, Esprit’s CEO, acknowledged the incredible challenges faced by the group throughout the pandemic. The enforced lockdown measures across Europe resulted in extended store closures, and even after reopening, the implementation of health protection measures remained a hurdle in attracting customers. However, despite these setbacks, Daley remains optimistic about the company’s future. He is determined to achieve growth in both the Asian and European markets in the long term.

To address the immediate challenges presented by the pandemic, Esprit will continue taking proactive measures. The company’s primary focus is on regaining profitability within the next two years. Esprit recognizes the ongoing uncertainties within the global economy, but it is committed to navigating through the crisis and emerging stronger in the post-pandemic world.

Useful links:
– To learn more about Esprit’s financial results, visit their official website: https://www.esprit.com/
– For insights into the fashion industry’s response to the pandemic, explore this article: https://www.businessoffashion.com/