Esprit Holdings Limited Provides consolidated earnings guidance for the five months ended 31 May 2023. For the period, the company expects to record an unaudited loss attributable to the shareholders of the Company of approximately HKD 604 million for the Period, as compared to the unaudited profit attributable to the shareholders of the Company of approximately HKD 13 million for the six months ended 30 June 2022. The Group is expected to record total revenue of approximately HKD 2,509 million for the Period, as compared to the total revenue of approximately HKD 3,626 million for the Comparison Period.

The decrease in revenue was primarily due to negative consumer sentiment in Germany and across the rest of Europe resulting from the poor economic environment and the continuing conflict in Ukraine. The Company's performance was also affected by short-term adjustments stemming from elevating Esprit's brand positioning in the fashion industry. The Group has implemented multiple initiatives to reinvigorate growth over the past half year, the Group estimates that these initiatives will come to fruition in the second half of the year, and already since implementation there have been noticeable positive developments.

Furthermore, there will be many exciting developments coming up, including new product launches in Third Quarter starting with the new denim line in August 2023. The Board considers that the significant loss is mainly attributable to the decrease in revenue cited above, which also led to the decrease of gross profit of the Group to approximately HKD 1,126 million for the Period, as compared to the gross profit of the Group of approximately HKD 1,659 million for the Comparison Period.