**Esprit Reports Lower H1 Results in Line with Expectations, Anticipates Stronger Second Half**.
**Esprit** has released its financial results for the first half of 2023, reporting a decline in sales and profitability in line with expectations. The company’s net sales for the period decreased by 12.4% year-over-year to 483.5 million euros (or 520.1 million U.S. dollars), as the fashion retailer was impacted by inflationary pressures and supply chain disruptions..
Gross profit fell by 20.4% to 191.1 million euros (207.4 million U.S. dollars) due to higher input costs, while operating profit declined by 33.4% to 29.7 million euros (32.2 million U.S. dollars). The company’s net income also experienced a significant drop, decreasing by 40.2% to 17.8 million euros (19.3 million U.S. dollars)..
Despite the challenging operating environment, Esprit highlighted several positive developments during the first half of the year, including strong growth in its online business, the expansion of its retail footprint in China, and the successful launch of its new brand campaign..
In terms of its regional performance, the Asia-Pacific region remained Esprit’s largest market, accounting for 53% of total net sales. However, sales in the region declined by 10.2% year-over-year, primarily due to the impact of COVID-19 restrictions in China..
Sales in Europe, which accounted for 39% of total net sales, decreased by 15.6%, largely impacted by the Ukraine conflict and inflationary pressures. The Americas region also experienced a decline in sales, decreasing by 10.3% and representing just 8% of total net sales..
Looking ahead, Esprit remains cautiously optimistic about its prospects for the second half of 2023. The company expects a gradual recovery in demand, particularly in Asia-Pacific, and anticipates a stronger performance in the fourth quarter driven by the launch of its new fall/winter collection..
