The clothing group Esprit Holdings Limited has also completed the 2024 financial year with deep red numbers. However, according to current knowledge, the shortfall was not as high as in the previous year. This emerges from an intermediate notification that the company published on Wednesday.
The net loss sinks to the equivalent of around 144 million euros
The past financial year was characterized by the insolvency proceedings for numerous regional subsidiaries in Europe and the USA as well as the changeover of the business model to a license -based model.
Not least because of the temporary deconsolidation of the companies affected by bankruptcy proceedings, the annual turnover fell by 73 percent to $ 1.59 billion (196 million euros). The gross profit shrank by 76 percent to $ 591 million.
Management now expects a loss of around $ 1.17 billion (144.5 million euros) for 2024. In the previous year, the shortfall was at 2.34 billion Hong Kong dollars.
Special effects determine the development of results
The main decisive factor for the development was extensive positive and negative special effects. The group announced that the deconsolidation of its subsidiaries reduced the loss of 3.07 billion Hong Kong dollars. In addition, the operational costs fell by $ 2.195 billion. In return, the company had to make a total of $ 2.04 billion in the amount of $ 2.04 billion and provide provisions for inventory and further depreciation of $ 1.27 billion.
However, the management emphasized that by departing from the previous capital -intensive business model and turning to a slim strategy based on the administration of licenses, “better positioned” in order to “sustainable the monetization of the global brand Esprit” in a sustainable way ” . The company plans to present its complete results for 2024 at the end of March.