Esprit suffers $298.9m net loss for FY2023 amidst challenging economic environment

The group's total revenue was down 16% YoY to $7.6m.

Esprit Holdings reported a net loss of $298.9m (HK$2.339b) for the fiscal year ending on 31 December 2023, expanding from the $84.8m (HK$664m) net loss in the same period last year.

In the same year, the group generated total revenue of $7.6m (HK$5.912b), marking a decrease of 16% compared to the total revenue of $9.02m (HK$7.063b) recorded in the corresponding period.

"The Year was extremely difficult and distressing for the Group," Esprit said 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,” it added.

Due to the group's net loss for the year, the board has decided not to declare or pay a final dividend for the year. 

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Meanwhile, the company expects global growth to slow in 2024 due to economic and geopolitical uncertainties, driving up energy and commodity prices.

“As a result, consumer spending will focus significantly more on essential needs, product quality, and sustainability standards,” it noted.