Esprit reports 75% sales drop, shifts focus to licensing

Esprit is now operating primarily as a licensor. Still, management hopes its licensing business will begin generating stronger revenue going forward. Without that growth, the insolvent holding company—under which the brand’s wholesale and e-commerce operations in Europe, Hong Kong, and North America are grouped—may continue to struggle.

In the first six months of 2025, Esprit reported sales from continuing operations of approximately HKD 6.59 million (about €724,000), down 75% from HKD 26.1 million during the same period in 2024.

The decline is mainly attributed to the loss of license income from European trademark rights, which were derecognized in 2024 following insolvency proceedings for the group’s German subsidiaries. The company posted a net loss of HKD 20.8 million, compared to a profit of HKD 9.1 million in the same period last year.

Discontinued operations, however, resulted in a profit of HKD 22.1 million for the period, which contributed to a modest net profit of HKD 1.3 million attributable to shareholders. As of June 30, the holding company employed just 38 people, down from over 500 the year prior.

Despite these setbacks, management intends to continue operations and is shifting its focus toward an “asset-light,” license-driven brand strategy. The model aims to reduce the significant costs tied to procurement, distribution, and retail operations.