**Esprit Q1 Results Slip as Predicted but Brand Promises Stronger Second Half**.
Esprit reported mixed results for the first quarter ended March 31, 2023, on Thursday, with revenues declining but profitability improving year over year, in line with the company’s expectations..
**Key Highlights:**.
* Group revenue fell by 10.4% to €408.1 million ($436.7 million).
* Retail revenue decreased by 11.1% to €252.1 million ($269.8 million).
* Wholesale revenue dipped by 8.8% to €149.2 million ($159.9 million).
* Adjusted EBITDA improved to €34.3 million ($36.8 million) from a loss of €14.8 million ($15.9 million).
* Net income turned positive at €1.6 million ($1.7 million) compared to a loss of €24.9 million ($26.8 million).
**Reasons for Revenue Decline:**.
The decline in revenue was attributed to several factors, including:.
* Store closures due to the pandemic.
* Reduced consumer spending in some markets.
* Supply chain disruptions.
* Increased competition.
**Improved Profitability:**.
Despite the revenue decline, Esprit’s profitability improved significantly, primarily due to:.
* Cost-cutting measures.
* Improved product margins.
* Positive currency effects.
**Outlook:**.
Looking ahead, Esprit remains cautiously optimistic about the rest of the year. The company expects revenue to rebound in the second half, driven by the following factors:.
* New product launches.
* Store renovations.
* Increased marketing efforts.
* Easing of pandemic restrictions.
Esprit also plans to continue its cost-cutting initiatives and focus on improving operational efficiency..
**CEO’s Comments:**.
Mark Daley, CEO of Esprit, said: .
