Escada declares sterling financial performance

16 Sep '05

3 min read

Leading international fashion house offering coordinated apparel, accessories and fragrance collections for day, weekend, evening and sports ESCADA AG after nine months of fiscal 2004-05 is firmly on track as planned, and has in fact shown a gratifying increase in new orders.

During the first nine months of the year, Group revenues at the maker of women's luxury fashions were up 2.6 percent, from EUR 450.9 million to EUR 462.6 million. This growth was supported mainly by the ESCADA brand, which gained 4.6 percent, rising from EUR 298.9 million to EUR 312.7 million.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) grew 35.3 percent to EUR 45.6 million in the first nine months (first nine months of 2003-04: EUR 33.7 million). Thus operating earnings rose significantly faster than revenues, thanks primarily to a higher gross profit margin generated by a higher full-price sell through combined with a lower cost ratio. Earnings after taxes and minority interests were up to EUR 9.6 million, compared to zero for the equivalent period a year earlier.

Consolidated revenues for the third quarter were up 3.5 percent to EUR 150.0 million (Q3 2003-04: EUR 144.9 million). EBITDA rose 37.9 percent, from EUR 8.7 million to EUR 12.0 million, and the profit after taxes and minority interests came to EUR 2.8 million (Q3 2003-04: EUR - 2.6 million).

For 2004-05 as a whole, ESCADA continues to expect Group revenues in eurosto rise slightly. Management assumes that the improvement of EUR 11.9 million in EBITDA for the first nine months of the year will expand even further for the year as a whole (EBITDA for 2003-04: EUR 47.3 million).

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