Esprit turnover plummets by 75 % after European exit

Fashion company Esprit saw its turnover fall by 75 % in the first half of the year, following the bankruptcy of its European operations last year. The group is now focusing on licensing income and expects this to be the driving force behind its much-needed recovery.

Shift to licences

In the first six months of 2025, Esprit saw its turnover drop from 26.1 million Hong Kong dollars to just 6.59 million (720,000 euros). This scaling down is reflected even more in its workforce: on 30 June, the holding company had 38 employees, compared to more than 500 a year earlier.

These results are largely the result of the bankruptcy of Esprit’s European operations in 2024. The fashion company was almost completely wiped out on the Old Continent, with only the brand rights finding a buyer (in British investment group Alteri). The group therefore hopes to generate licence income from this source in future. Today, the Esprit holding company still groups together the wholesale and e-commerce branches in Europe, Hong Kong and North America.

Despite the setback, management is pressing ahead and shifting to an ‘asset-light’ brand model based on licences. This approach should reduce the heavy burdens of purchasing, distribution and retail and stabilise the revenue stream. Stronger licence growth will be crucial to ensuring the continuity of the holding company.