Esprit Holdings Limited has issued a profit warning, stating that based on its evaluation of unaudited numbers, it is expected to experience a loss for the majority of the first half.
It claimed that, “based on the preliminary review of the unaudited consolidated management accounts of the group for the five months ended 31st May 2023 and information currently available to the board,” it expects to record an unaudited loss attributable to the shareholders of about HK $ 604 million.
That compares to a profit of HK $ 13 million for the whole six months that ended 30th June 2022. The group is anticipated to report total sales of around HK $ 2.509 billion for the five months, down from HK $ 3.626 billion for the six-month comparison period, according to a statement made via the Hong Kong Stock Exchange.
Additionally, the gross profit should decrease to around HK $ 1.126 billion for the time period from HK $ 1.659 billion a year earlier. The decline is mostly attributable to bad consumer mood in Germany and the rest of Europe brought on by the unfavourable economic climate and the ongoing conflict in Ukraine.
However, “short-term adjustments stemming from elevating Esprit’s brand positioning in the fashion industry” have also had an impact on the performance.
Over the previous half year, it has implemented several efforts “to reinvigorate growth,” and it predicts that they will “come to fruition in the second half of the year, and already there have been noticeable positive developments.”
Additionally, it stated that “there are many exciting developments on the horizon, including new product launches in Q3 beginning with the new denim line in August.” The company is presently in the process of completing the first half of its financial year, which is made up of the consolidated results for the time and the results for June 2023.
