The board of directors of Esprit Holdings Limited to update and further inform the shareholders of the Company and potential investors that based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2023 and information currently available to the Board, the Group is expected to record an unaudited loss attributable to the Shareholders of approximately HKD 715 million for the Interim Period, as compared to the unaudited profit attributable to the Shareholders of approximately HKD 13 million for the six months ended 30 June 2022. The Group is expected to record total revenue of approximately HKD 3,025 million for the Interim Period, as compared to the total revenue of approximately HKD 3,626 million for the Corresponding Period, a decrease of approximately 16.6%. 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 the short-term adjustments stemming from brand elevation and repositioning in the fashion industry. The Group has implemented several progressive initiatives to reinvigorate its growth over the past half year and the management estimates these initiatives to come to fruition in the second half of this year as the Group has already seen noticeable positive developments from the June results. Furthermore, there will be many exciting developments coming up in the second half of this year such as the launch of the New York retail store, new collection with significant superior quality and design, together with a new denim line developed by the Group's new innovative centre in Amsterdam.