, Hong Kong
Photo via Esprit's website.

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. 

ALSO READ: Asia's retail sector thrives amidst e-commerce dominance

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.

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!