Esprit, the international fashion brand, has reported a decline in its first-half results for 2023, as anticipated. Despite the decrease, the company remains optimistic about its prospects for the second half of the year, citing several factors that are expected to drive growth..
**Financial Performance**.
Esprit’s revenue for the first six months of the year amounted to €402.4 million, a decrease of 11.5% compared to the same period in 2022. The company attributed this decline primarily to the challenging economic environment, which has led to reduced consumer spending..
Gross profit margin also decreased, from 56.1% in H1 2022 to 54.5% in H1 2023. This was partly due to higher sourcing and logistics costs..
As a result of these factors, Esprit’s operating profit fell by 30.3% to €32.7 million in H1 2023. Net income also declined, from €24.7 million in H1 2022 to €17.1 million in H1 2023..
**Reasons for Decline**.
Esprit identified several factors that contributed to the decline in its H1 results. These included:.
* Challenging economic environment, with reduced consumer spending.
* Higher sourcing and logistics costs.
* Temporary store closures due to COVID-19 restrictions in China.
**Outlook for Second Half**.
Despite the decline in H1 results, Esprit remains optimistic about its prospects for the second half of the year. The company cites several factors that are expected to drive growth, including:.
* Recovery in consumer spending as economic conditions improve.
* Cost-cutting measures to improve profitability.
* New product launches and marketing campaigns.
* Expansion into new markets, such as Southeast Asia.
Esprit also notes that the second half of the year typically accounts for a larger proportion of its annual revenue and profit..
**CEO Comments**.
Anders Kristiansen, CEO of Esprit, commented on the H1 results and the company’s outlook for the second half:.
