E-commerce
As the ESPRIT brand website and third party E-commerce partners continued to trade during
lockdowns, a large portion of sales were generated online. This business model allowed the Company
to mitigate some of the negative impacts of the Pandemic in the retail segment.
Revenue in the E-commerce channel increased 1541% compared to the Corresponding Period. Due
to the short fiscal year in 2020 and the Deconsolidation, only one month of E-commerce sales was
included in the Corresponding Period. In actual terms, E-commerce was the best performing channel,
having a low double-digit growth versus a like for like in 2020. The growth can be attributed to a
natural customer shift to making purchases online due to entry restrictions to brick and mortar stores,
a strategic increase in digital marketing efforts, and less number of returned purchases during the
lockdown period. The Group remains confident that the Company will see further future growth in
the E-commerce channel.
Wholesale Business
For the Current Year, wholesale revenue increased by 881% compared to the Corresponding Period.
This was due to the short fiscal year in 2020 and the Deconsolidation. On a like for like basis,
wholesale channel revenue saw single digit growth in the Current Year, and to a larger extent
compared to the Company’s retail operations. This can be attributed to a partial mix of wholesale
customers in the online market, and partially due to the location of physical franchise stores compared
to retail stores. The Pandemic has accelerated the future of work trends where many people work
from home or remotely, which contributed to a decline in footfall in major cities, and increased
traffic to local high streets. ESPRIT’s franchise network has a larger mix of stores in local high street
locations than in its portfolio of retail locations. The effects of the Pandemic also hampered revenues
in ESPRIT’s wholesale channel; however, the Company expects growth in 2022 as Pandemic related
social restrictions gradually ease.
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Retail Business
For the Current Year, retail revenue recorded an increase of 512% compared to the Corresponding
Period. This was due to the short fiscal year in 2020 and the Deconsolidation. On a like for like basis,
comparing the same number of retail locations year on year, retail revenues for the Current Year
saw a small increase. The government-imposed restrictions placed on European retail stores in 2021
were of a similar magnitude to those in 2020. The retail business industry is expected to improve
significantly in 2022 as pandemic related restrictions become more relaxed.
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