For the first time since 2017, Esprit has managed to make a profit again. The difficult years seem over, under a new management the company prepares for a return to Asian markets.
Back to black
Esprit has finished its financial year 2021 in the black, with a net profit of 370 million Hong Kong dollars (more than 40 million euros): not the biggest of profits, but certainly a huge turnaround for the company that has been constantly below zero since June 2017.
Improved gross margins and a rise in sales pushed profits above zero again, after Esprit spent the past period cutting costs, improving stock management and focusing on e-commerce. However, it is hard to compare annual figures exactly, as Esprit moved its financial year by six months.
Back to Asia
Still, the preliminary results are enough to boost Esprit’s confidence: a new management sees current CEO ad interim William Pak appointed to full-time CEO, assisted by a new Chief Financial Officer, Chief Product Officer and Chief Digital & Management Officer. The aim to revitalise the brand and lead its return to the Asian markets.
Just two years after closing all of its Asian stores, except those in China, the company says it is ready to return. More good results are expected to follow because of the company’s new and ambitious e-commerce strategy and new, improved collections.