The clothing provider Esprit Holdings Ltd. His final results for the 2024 financial year presented on Monday evening.
The numbers were shaped by the ongoing insolvency proceedings of almost all international subsidiaries and the resulting one -off effects. In the course of the renovation efforts and a changeover of the business model to license partnerships, the company has now given up most of its individual and wholesale business and sold trademark rights for the European market.
Not much has remained from traditional business
According to the current annual report, the group turnover from continued business areas-i.e. without the shares of the subsidiaries that are temporarily deconsally deconsally deconsolidated in the context of the ongoing renovation procedures-were 42 million Hong Kong dollars (4.5 million euros) in 2024, which corresponded to a decline of 16 percent compared to the previous year. According to the company, it was essentially licensed. The total turnover of the insolvent companies, which did not go into the group balance, therefore fell by 73.5 percent to $ 1.55 billion.
The operational loss from the continued business areas increased from 181 to $ 288 million, the net loss of these business parts rose by 34.7 percent to $ 287 million.
Due to positive one-off effects in the course of deconsolidation, however, the net loss of the insolvent subsidiaries fell by 55.8 percent to $ 940 million. For example, the expelled, loss of the group, which had been decreased by the group, which had been $ 2.34 billion in the previous year, decreased by 47.5 percent to $ 1.23 billion (132.7 million euros).
Esprit continues to rely on a license model
Although the company has almost completely stopped its traditional business activities, it continues to continue to continue the Esprit brand. The “global presence” of the label should in future be ensured by license partnerships for various market regions, the group confirmed.
Esprit has already ceded the trademark rights for Europe, its former market by far. As the company announced in the current annual report, they were acquired last autumn together with the shoe license rights for the US market by Fasbra SE, a subsidiary of the German shoe retailer Deichmann SE. As part of the agreement, the group now receives 25 percent of the net profit for a period of ten years, which Fasbra generates the Esprit brand in Europe. However, it is still unclear how a restart of the label in Europe could be realized.