The account will be run out of Germany, with PHD’s Frankfurt office taking responsibility for media services from February 2011.
Initial focus will be on key European markets such as Germany, France, the Netherlands and Belgium.
A spokesman for Esprit said that the decision to appoint PHD had been based on "the passion with which the whole team has committed itself to the company and its communicative needs".
Dirk Fromm, chief executive, PHD Germany, said: "Esprit is a wonderful new client in the PHD portfolio. We can hardly wait to get started and give our best."
In the past 12 months, PHD Germany has won new business, including PayPal, Hyatt Hotels and Porsche and, most recently, natural cosmetics brand Weleda.