Escada has created the basis for a lean platform in fiscal year 2002/2003 (fiscal year end: 31.10.) despite numerous external challenges which will allow for future growth.
Due to the successful capital measures in October 2003, with funds raised of almost 100m Euro, ESCADA is now in a very solid financial position:
– Financial debt has been reduced by 100m Euro to 204m Euro since July 31, 2003.
– Thanks to the capital increase and the re-negotiation of bank debt, repayment of the bond (100m Euro) is secured in August 2004.
– As of October 31, 2003 the ESCADA Group reached an economic equity ratio (including convertible bonds) of 20.5 % (October 31, 2002: 17.0 %).
Sales and EBITDA of ESCADA Group for 2002/2003 developed as announced in September:
– Group sales reached 621m Euro (2001/2002: 773m Euro). Adjusted for de-consolidation and foreign currency effects sales declined by 5.0 %.
– EBITDA was 6m Euro (2001/2002: 55.1m Euro).
– As announced, there was a one-time negative impact of 42m Euro (thereof 26.5m Euro restructuring charges) on the profit after tax. After tax and minorities preliminary Group loss amounted to 75m Euro (2001/2002: plus 4.4m Euro).
The execution of the restructuring program, which was announced in September, is well on track:
– Within the end of fiscal year 2004/2005 costs to be reduced by 60m Euro (thereof 40m Euro already 2003/2004).
– 75 % of staff have been given notice.
– Sale of Féraud is a further step in focusing on core ESCADA.
ESCADA CEO Wolfgang Ley: #'After a difficult year in fiscal 2002/2003, ESCADA is back on track. We now have a very solid financial base from which we can consequently build the ESCADA brand even further. Management believes that even without a worldwide economic pickup, our new lean platform will give us a chance to return to after-tax profitability at the Group level as early as fiscal 2003/2004.''