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Esprit net losses widen in 2023 as sales plummet 16 percent

Esprit Holdings reported a 16 percent dive in revenues to HKD 5.912 billion (USD 7.6 million) in 2023, as the Hong Kong-listed company widen losses during the 12 months.

SEE ALSO: Ahead of rebrand, Esprit announces annual financial results

The group, which has been listed on the Hong Kong Stock Exchange since 1993, recorded a 15 percent drop in e-commerce sales last year, a 20 percent decline in wholesale activity, and a 14 percent decrease in its retail network, while its licensing activities remained stable.

For 2023, the firm reported an annual net loss of HKD 2.339 billion, increasing 252 percent, compared to a loss of HKD 664 million in 2022.

“The year was extremely difficult and distressing for the group,” said Esprit Holdings in a statement.

“The group’s performance was severely impacted by the unrelenting poor macroeconomic environment in Europe, particularly in Germany, the inability to reduce operating expenses due to long-standing historical structural issues and the short-term detrimental effects of the group’s restructuring efforts, which was intended to ensure a brighter future for the company.”

Coinciding with the results, Esprit said its executive director Wolfgang Paul Josef Schlangmann is departing.

Simultaneously, Anthony Nicola Strippoli has assumed the role of executive director, having served as the group’s director of operations for the Americas since January 2024.

Looking ahead, management announced a series of measures, including financial restructuring and significant cost reduction across all areas, which may also involve “adjusting its human resources,” although no specific information was provided. Additionally, Esprit said it plans to explore new export markets and strengthen its presence in the United States.