The retailer has announced a loss of $503M as a result of the Covid-19 pandemic.
Esprit had previously revealed plans to adapt their strategic operations, the company lay this out in their results filing: “During the first half of the year, the group continued the execution of the strategic plan presented in 2018 to restore Esprit to sustainable growth and profitability. A plan characterised by measures to become a leaner organisation with a smaller physical store footprint. These strategic goals have been put in place to slow the rate of sales decline, increase the mix of full price sales and lower operating expenses.”
However the impact of the ongoing Coronavirus pandemic has been too great for the retailer and they have attributed $155M of the loss to store closures caused by Covid-19. A further $77M can be attributed to the brands reduced store footprint and a similar amount was the cause of a sales decline in the Asia Pacific market where the brand has closed all of its stores.
