Esprit set to lose US$89 million this year as it struggles to connect with younger consumers

Esprit Holdings is set to lose almost twice as much this year as it made last year when it finally became profitable after five years.

Sales went down 15 percent to $900 million, which Esprit estimates would cost shareholders up to $89.2 million.

Esprit blamed the war in Ukraine, heightened supply-chain costs, and inflation.

Last year, Esprit posted $48.7 million in profit on sales of $1.06 billion, thanks to a 7 percent increase in gross margin.

Esprit attributed the turnaround to infrastructure, strategies adopted by the new management team, cost-control measures, improved inventory management, and growth in online sales.

Esprit, which is still struggling to engage with younger fashion-conscious shoppers, began promoting unisex cricket jumpers to Gen X early this year.