German fashion group Esprit has reported a decline in sales for the first half of the 2019-2020 financial year, ending on December 31, 2019. Sales dropped by 11.8% to HKD5.76 billion (€679.5 million). However, taking into account the fact that Esprit’s total retail area decreased by 14.8% during the same period, the company’s revenue actually improved on a like-for-like basis.

Esprit has been facing challenges in recent years and has been working to streamline its store network. The company has made progress in reducing its losses, with net losses in H1 2019-20 significantly shrinking to HKD331 million (€38.7 million), compared to HKD1.773 billion (€207 million) in the previous financial year.

Despite the difficult market situation, Esprit’s CEO, Anders Kristiansen, expressed satisfaction with the company’s performance. He highlighted Esprit’s remarkable progress and accomplishments in a short period of time.

The German market, which accounts for more than a third of Esprit’s sales, saw a decline in revenue of 12% to HKD2.05 billion (€239.6 million). However, the wholesale channel in Germany performed well, with sales only dropping slightly by 0.9% to HKD1.06 billion (€123.9 million). The rest of Europe generated sales of approximately HKD1.7 billion (€198.6 million). In Asia, total revenue for H1 was HKD356 million (€41.6 million). Esprit’s e-commerce site also performed well, contributing sales of around HKD1.61 billion (€189.2 million).

Despite the challenges, Esprit’s board remains optimistic about the future. The group is satisfied with the direction of its financial results and believes it is on the right track in implementing its strategic plan. The progress made in H1 is seen as a positive sign of Esprit’s recovery.

Useful links:
Esprit Official Website
Esprit Stock Overview