The clothing supplier Esprit presented its business figures for the first financial year after the major upheaval on Monday. After the company sold off most of its operating business, the parent company Esprit Holdings Ltd. now completely on a licensing model for the once popular brand. Accordingly, the losses were significantly lower than in the previous year. However, revenues also fell significantly.
The reported net loss attributable to shareholders, which was around 1.2 billion Hong Kong dollars in 2024, shrank to 20.5 million Hong Kong dollars (2.3 million euros) due to the extensive cuts in business activities. However, in the previous year the immense losses from the areas that have now been discontinued were included in the balance sheet. Loss from continuing operations was reduced from HK$266.5 million to HK$42.6 million.
At the same time, sales from continuing operations, which now come entirely from licensing income, fell to 20.5 million Hong Kong dollars (2.3 million euros). This means that it was not even half as high as in the previous year, when it was 42.0 million Hong Kong dollars. The company justified the decline with the loss of licensing income in Europe, which was once by far the brand’s most important market. Esprit sold the trademark rights for the region to the Deichmann subsidiary Fasbra SE as part of the insolvency proceedings of its German subsidiaries.
Esprit relies on China and North America
The company is now relying on the fact that it will continue to hold all trademark rights for the non-European regions – with the exception of the trademark rights for shoes in the USA, which also went to Deichmann. The focus is now on expanding Esprit’s presence in Asia and America together with local licensing partners. The focus is on activities in Greater China and North America.
Esprit sees opportunities particularly in the current change in consumer behavior. The company explained that consumers would continue to value tried-and-tested brands, but would shop more price-consciously given the overall economic situation. In this segment, Esprit now wants to further establish itself in its target markets with the new, cost-efficient business model.
