Esprit's 2021 revenue rises despite COVID-19 challenges

Esprit has released its financial results for the year ending 31 December 2021, revealing a "significant" increase in revenue to £806 million (HK$8.3 billion).

The company's profit rose to £37 million (HK$381 million). This follows a £40.2 million (HK$414 million) loss in the final six months of 2020, the closest comparable period after it changed its financial year end date.

Gross profit margin was 48.6%, 7% higher than the previous period.

Revenue was affected by lockdowns in the company’s major European markets in Q1 and additional restrictions in Q4. However, Esprit still generated revenue across ecommerce, wholesale and owned retail stores.

The group credited its financial growth to:

• New infrastructure and strategies instituted by its current management team.
• Improvement in sales with higher gross profit margin.
• "Positive" results of efficient cost control measures.
• Improved inventory management.

Looking ahead, Esprit expects to be negativity impacted by the "lingering effects of the pandemic and the conflict in Ukraine".

Pak William Eui Won, Executive Director, CEO and COO, said: “The remarkable results are definitely a testament to the company’s collective efforts by devoted staff at Esprit, including the successful migration of selected strategic functions from Germany back to Hong Kong, Esprit's new global headquarters.

"Combining expertise from the two offices has created a stronger organisational balance and workplace synergy. It is also evident that the current management team has crafted the correct infrastructure to re-establish Esprit to become a market leader. We will continue to strengthen Esprit by becoming a truly omni-present brand and enhancing our product portfolio that fits with the Company’s mission of making our customers feel good to look good."