Escada Q1 net profit drop

The German fashion concern Escada Group saw its net profit drop 5.6 percent in the first quarter to €107.9 million. Group sales fell 3.3 percent to €161.2 million. Profit before tax, however, gained 13.5 percent. The group blamed the drop on foreign currency effects, but did not appear concerned. The fall in sales was said to have been the result of the “deliberate adjournment of sales into the second quarter” to coincide with current market requirements. Sales for the Escada brand dropped 7.8 percent to €111.5 million, although EBITDA rose 9.6 percent.

“We have laid a solid platform in the first quarter to achieve our objectives for the full fiscal year,” said chief executive Frank Rheinboldt. “The Group's current strategic projects are all in line with plan, especially the worldwide renovation program for our own shops. The ongoing optimization of structures and processes allows us to improve our cost positions continually further.”

Earlier this week the group announced its new strategi partnership with footwear business Vicini. The Italian company is owned by Giuseppe Zanotti, which also holds footwear licenses for Gianfranco Ferré and Roberto Cavalli. Vicini will produce all Escada prototypes. Current footwear licensees will continue to produce shoes for the group under supervision of Florence based Escada Production Accessories. Escada's creative director Damiano Biella will be responsible for footwear designs.

www.escada.com
7 maart 2007

Escada launches Escada Kids

German luxury brand Escada is joining the scores of other offering premium children's wear. The fashion house has signed a licensing agreement with CWF Group (Children Worldwide Fashion) for a line of children's wear. The new range will debut with the fall/winter collection 2007. CWF will be responsible for the creation, production and distribution of the line, which is geared towards girls up to age 16. CWF already has partnerships with leading fashion houses, such as Chloe, DKNY, Missoni, Timberland, Elle and Marithe + Francois Girbaud. The company also has its own network of boutiques in Europe called ‘Younly'.

“With CWF, we have found the ideal partner for our kids' fashion,” said Escada chief executive Frank Rheinboldt. “I am certain that CWF will look after our brand in the same way as customers are used to from Escada: demanding the highest quality, with a preference to work with special materials and a sense of detail and colour.”

www.escada.com
30 October 2006

Escada optimistic despite net profit drop

German fashion group Escada AG has reported a decline in net profit for the third quarter of 21.8 percent to €4.3 million, “merely due to the advanced collection in the third quarter of fiscal 2004-5 of a dividend payment from an affiliated company”, chief executive Frank Rheinholdt explained. He declined to divulge the name of the affiliated company. Meanwhile, gross earnings rose 13.3 percent to €13.6 million. Group sales rose 5.3 percent to €157.9 million, thanks to strong results in Europe where sales rose 9.4 percent. Sales of the Escada brand increased 5.6 percent to €109.6 million. Rheinholdt said that the three Escada collections – Escada, Escada Sport and the accessories and licenses – had contributed to the growth. “Escada is full on track to achieve its projected year-end results,” he said in a conference call.

The group will welcome new creative director Damiano Biella on 1 October. Rheinholdt commented on the departure of his predecessor Brian Rennie: “Brian was responsible for 12 years of success for the brand after the death of Margaretha Ley, and that's something no one can take away from him. But the brand has too many images. It's still a bit too Eighties or Nineties in established markets, though in new markets like Russia , Escada is seen as a younger, contemporary brand.” Biella is expected to bring femininity and international flare to the mix and will also over visual merchandising and advertising.

The company's refurbishment plan of its existing stores is now in full swing. Rheinholdt describes the new look as “clearly more feminine, more luxurious and with another class”. The overhauled stores will debut in Vienna , Hamburg and Munster in October. Store openings will follow in December in Hong Kong , Australia , Mumbai, Beijing , Shanghai and London and in January, Taiwan , Madrid , Beverly Hills and New York will open their new Escada stores. The renovation plan will last two years, during which time no new stores will open. Only once the refurbishment of existing stores is completed, will new stores be rolled out. The company has reserved between $38 million and $44.5 million for the project.

Escada estimated sales growth for the year would be in the mid single-digit range. Gross earnings should increase approximately 10 percent. The company also expects net profit to “record a positive figure”.

www.escada.com
29 September 2006

Escada H1 earnings surge

German fashion group Escada has recorded a rise in group sales of 6.2 percent to €332.1 million for the first half of fiscal 2005/6. Group sales in the second quarter rose 8.5 percent to €165.4 million. Consolidated gross earnings (EBITDA) were up by 9.8 percent to €36.9 million. Gross earnings for the Escada brand rose 16.2 percent from €22.8 million to €26.5 million. The group’s subsidiary, the Primera Group, saw gross earnings remain below last year’s first half result of €12.2 million. This was due to start up costs related to the expansion of its retail business and the relatively high results achieved in the first half of last year. The group’s gross earnings for the second quarter surged 25.2 percent from €13.1 million to €16.4 million. The Escada management board has determined that some changes need to be made to the valuation of inventories and deferred taxes abroad. These one time measures will improve the working capital management, which will be executed more efficiently in the future. Of the total amount of €16.3 million, 10 percent could become cash-effective. Including one-time expenses, earnings before taxes in the first half amounted to €6.5 million, down from €14.5 the year before. Without these one-off expenses, earnings before taxes rose soared nearly 28 percent to €18.5 million. The management board estimates sales growth for the full fiscal year 2005/6 to be in the mid single-digit percentage region, while EBITDA is said to be around 10 percent. Group earnings after taxes are expected to be positive.
“We are satisfied with the operative performance over the first six months, Escada is continuing on its path of growth and manages to generate over-proportional gains in earnings,” chief executive Frank Rheinboldt said in a statement. “Our collections continue to be received with good response, both by the retailers as well as our end customers. Though the revaluations made during the second quarter will have a short-term effect on earnings, they underline our focus on improving cash flow by reducing current assets and therefore constitute an important basis for the continued profitable growth of Escada.”

www.escada.com
30 June 2006

Escada Q1 profits rise

Escada has reported a profit rise of 5.1 percent on sales up 4.1 percent in the first quarter. The German luxury fashion house said that operating costs would be higher due to retail expansion and higher marketing expenses.

Consolidated profits for the quarter rose to €20.5 million (£14.06 million) from €5.9 million during the period before. Group sales soared to €166.7 million from €160.1 million.

The company said that the positive results were offset by a small rise in operating costs in the first quarter. According to Escada, the expansion of the Biba retail chain, increased marketing expenses an exchange rate differences all contributed to higher costs.

Chief executive Frank Rheinboldt said that first quarter results met company expectations, but declined to make predictions on the back of them. “One has to bear in mind that in the usual seasonal course of Escada business, the first three months constitute a strong quarter,” he said. “The results cannot simply be projected over the full fiscal year.”

Escada exprects mid-single-digit sales gain in the fiscal year 2005-6. Sales for the previous year amounted to €648.6 million.

www.escada.com
6 March 2006

Escada reports profit rise

German fashion house Escada has reported a considerable rise in profits for the year 2004/5, in line with forecasts.
Group sales rose 3.7 percent, while Escada brand sales were up by 5.8 percent to €436.5 million (£296.2 million). Profit after tax climbed 9.5 percent to €14.0 million. The company announced that it has regained its capacity to pay out dividends, and has predicted further growth and profitability improvements for this fiscal year. “Escada is now in a phase of sustained and profitable growth,” said Wolfgang Ley.

The Primera Group, with the labels Apriori, Biba, Cavita and Laurel, saw sales rise 2.8 percent to €211.5 million. The Laurel brand was integrated into Escada in Japan and China, whereby the adjusted growth rate rose by 5.7 percent, largely due to the continuing expansion of apriori and Biba.

www.escada.com
21 December 2005

Escada founder passes the torch

Wolfgang Ley, founder and chief executive of German fashion house Escada is to step down from his position on 31 January 2006, according to WWD. Ley, who founded the group with his late wife Margaretha in 1976, will be passing the torch to Frank Rheinboldt, the current ceo of Escada Group's Primera AG. He will, however, not be relinquishing his say in the company's development and public image. As creative chairman of the group, Ley will continue to influence the brand's direction in this ambassadorial role.

“I am in charge of building new collections, influencing the store layout and store design, scouting the world for new design talents, especially in Russia, India and China, and making sure that the message of the brand is consistent,” Ley told WWD. He emphasized that the decision to step down as chief executive was entirely voluntary. “I was 67 years old, and at the beginning of January, I was sitting in my office, thinking, ‘I have a contract until 2008 as CEO.' I wanted to initiate the recruitment process.”

Ley decided on Rheinboldt as his successor after reviewing a list of his own candidates. Rheinboldt had a proven track record of turning the Primera business around. The company includes the brands Laurel, Apriori and Cavita as well as the Biba retail chain. “From an operating point, the company is profitable. We are growing,” Ley said in response to why he was not sitting out the term of his contract.

“I thought, ‘What is the biggest gap in the company?'” he said. “I know the DNA of the brand and I have built most of the markets. I can support the brand with my know-how of different cultures.” Ley also said that he would be working more closely on developing advertising campaigns, an example of which is the new campaign for spring, featuring Linda Evangelista shot by Steven Meisel.

www.escada.com
24 October 2005

Escada's expansion plans

German fashion house Escada AG has announced plans to expand its lifestyle fashion range Escada Sport and its accessories unit, reports just-style.com.

Next autumn, the company will begin introducing four Escada sport collections instead of the current two. In addition, Escada intends to increase the revenue share from accessories to 25 per cent, from its current 5 percent.

www.escada.de
4 August 2005

Escada H1 profits rise

The German fashion house, Escada, has posted consolidated sales of EUR 312.6 million (GBP 213.9 million) in the first half of 2004/2005, up 2.2 per cent from EUR 306 million during the same period a year earlier. Despite a continued weak market in women's fashions, Escada brand revenues climbed 4.4 per cent to EUR 208.1, up from EUR 199.3 million. Primera Group revenues remained at approximately the same level as the year before. The Primera Group is comprised of the labels Apriori, BiBA, Cavita and Laurel.

First half net profits more than doubled, from EUR 2.6 million to EUR 6.8 million. During this period the company reduced inventories, thereby freeing up capital. Projections for the fiscal year 2004/2005 include a slight increase in revenues in euros, an EBITDA increase of at least EUR 10 million and a proportionate increase in net profit.

www.escada.com
30 May 2005

Escada shares up as funding secured

Escada has secured bank funding until the end of 2006, boosting investor confidence in the company, which is fighting flagging demand for its upmarket clothes. Shares in the German fashion house gained more than 6 per cent on news that its banks had agreed to maintain existing credit lines until the end of 2006.

Escada said that the banks would also guarantee redemption of its 100 million (£70 million) corporate bond issue, which matures next summer. The retailer has declined to give an outlook for this year after issuing a profit warning in June on the back of a slowing global economy and the impact of the SARS outbreak.

August 21 2003
www.escada.de

Escada Shuts Bond Street Store

Escada has closed two London franchise stores - one in Bond Street and the other its Escada Sport store in St John´s Wood. The brand is also closing its Escada Sport concession from Harvey Nichols in Knightsbridge.

Bond Street and St John´s Wood were run as franchises by the Ziff family´s Robina International before closing two weeks ago. Director Robina Ziff said they had been hit by a fall in tourists: "It has been difficult for the past two years. Customers felt collections had not moved on and price points were too high."

Escada stated the Bond Street store "had not moved forward along the high levels of corporate identity standards of the Escada group." However, Ziff said she had spent GBP 1m on a new storefit some 18 months ago.

Escada UK director Samantha Cradock was considering alternative sites for a London flagship, possibly in Old Bond Street.

Escada will continue to be sold through its own shop in Sloane Street, its concession in Harrods and via London independents.

Wholesale prices for spring 04 were reduced by 15 per cent and like-for-like sales for the new collection were up 11 per cent on spring 03.

6 June 2003
www.escada.de

Escada positive despite plunging sales

Escada AG, the German fashion house, on Monday said it had completed its turnaround and was optimistic about profits for the current financial year. The Munich-based company said that results for the first quarter were below the previous year's level. Profit sales fell to 155 million EUR. Pre-tax profit was 500,000 EUR compared to 11.9 million EUR in the year-earlier period.

Escada said it "intentionally dispatched less merchandise" to own and franchise stores following the terrorist attacks in the US in September 2001 to "minimize risks and safeguard gross profits". The policy affected the second half of the year ended 31 October 2002 and the first quarter of the current financial year, the company stated.

For the year ended 31 October 2002, the company posted a pre-tax profit of 25.1 million EUR compared to a pre-tax loss of 17.1 million EUR a year earlier. Turnover dropped to 772.9 million EUR.

www.escada.de
February 25, 2003

Escada announces doubled sales by 2010

German fashion company Escada plans to hit the one billion euro mark by the year 2010. Only recently the company posted a 72% rise in the nine-month pre-tax profit. Escada, which is based in Munich looks to double sales in the next eight years, according to majority shareholder and CEO of the company Wolfgang Ley.
The company plans to step up its accessories and licensing operations and forecasts sales of 600 million euro for the Fashion, Escada Collection and Escada Sport division, 300 million euro for licences and 100 million euro for accessories.

www.escada.de
09-20-02

Escada's to put Feraud up for sale

German fashion company, Escada AG said it will acquire the 45 per cent stake in Feraud held by Dutch clothing maker Secon group. At the end of this month, Escada will integrate its 90.1% interest in Kemper into its Krefeld-based subsidiary Feraud GmbH. Escada will then own 90 per cent of Feraud, plans to sell the brand.

This announcement was made at the same time Escada presented its results for the nine months up to July 31st 2002. In this period the company improved its pre-tax profit by 72% to 19.5 million euro. Escada that is based in Munich said the earnings are the result of considerably lower costs, which fell by 10.3 per cent in the period.

The company's profit after tax was 3.5 million euro compared to a loss of 900,000 euro in the same period last year. Escada reiterated its 2002 forecast and said it expected full-year pre-tax profit to be in the "double digit million range". Turnover will be slightly lower than in the previous year, Escada said. For the nine months sales were 571.6 million euro, this means a decline of 5.6% from 605.7 million euro in the year-earlier period.

www.escada.de
09-17-02

ESCADA completes sale of ESCADA Beauté Group to Wella

ESCADA AG and Wella AG have according to plan concluded the transfer, announced March 4, of the ESCADA Beauté Group S.A. to Wella. ESCADA Beauté's stock is recognized as having been transferred to Wella effective April 1, 2002. ESCADA Beauté will therefore no longer be consolidated in the ESCADA Group as from this date.

ESCADA AG has provided Wella a longterm license to produce, market and distribute perfumes and cosmetics. As already announced however, ESCADA AG will continue to hold the rights to the ESCADA brand. The divestiture of ESCADA Beauté conforms with the ESCADA GROUP strategy to concentrate activities on the core businesses fashion, accessories and licensing.

19-5-2002
www.escada.de