14.12.2004 – 08:06

ESCADA AG

euro adhoc: ESCADA AG
Quarterly or Semiannual Financial Statements / ESCADA Group returns to profitability in Fiscal Year 2003-04 as planned

Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

Aschheim/Munich, December 14, 2004 - The ESCADA Group, (SDAX: ESC),
has returned to profitability in fiscal 2003-04, ended October 31, in
line with its stated objectives, despite the continued weakness of
the market for women’s luxury fashion. The Group announced
preliminary earnings before interest, taxes, depreciation and
amortization (EBITDA) of EUR 47.4 million, compared to EUR 8.4
million last year. Of this total, EUR 35.6 million (previous year:
EUR 15.1 million) was contributed by the ESCADA brand, EUR 13.3
million (previous year: EUR -4.6 million) by PRIMERA Group and EUR
-1.5 million (previous year: EUR -2.1) by Badgley Mischka, which was
sold in October 2004. 
The Group showed a consolidated after-tax profit before minorities of
EUR 4.5 million, compared to the prior year’s loss of EUR 77.6
million. The main source of this substantial improvement in
consolidated earnings was the successfully implemented program to cut
structural costs. With savings of almost EUR 45 million, the program
outperformed its EUR 40 million target for the year. 
Consolidated sales for 2003/2004 reached EUR 625.5 million, a 0.8
percent gain over the prior year’s EUR 620.8 million. After
adjustments for changes in foreign-exchange rates, growth was 3.5
percent.
For the current fiscal year 2004-05, management expects all
key-figures to improve significantly despite sustained weakness in
the market for women’s luxury fashion, thanks to the Group’s new,
leaner platform and measures being taken for product growth and
geographical expansion. Management projects, in the absence of
unforeseen events, that Group revenues will increase in Euro during
fiscal year 2004-05, that Group EBITDA will grow significantly, and
that there will be disproportionate improvement in consolidated
after-tax profit.

end of announcement                    euro adhoc 14.12.2004 07:30:00 

Further inquiry note:

Viona Brandt
Tel.: +49 (0)89 9944 1336
E-Mail: viona.brandt@de.escada.com

Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: SDAX, Prime Standard, CDAX, Classic All Share, Prime All Share
Börsen: Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Frankfurter Wertpapierbörse / official dealing
Bayerische Börse / official dealing