ESCADA AG

euro adhoc: ESCADA AG
quarterly or semiannual financial statement
ESCADA further improves earnings in first quarter 2006/2007

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Company Information

06.03.2007

Aschheim/Munich, March 6, 2007 - ESCADA AG records operative business performance for first quarter of fiscal year 2006/2007 (reporting date: October 31) in line with expectations and improves earnings still further. Consolidated sales for the women’s luxury fashion manufacturer totaled 161.2 million Euro for the first three months, as against 166.7 million Euro for the same period of last year (-3.3%). This reduction is essentially due to foreign currency effects and the deliberate adjournment of sales into the second quarter. The shift of sales is the result of the delivery schedules being adjusted to market requirements. Currency adjusted - that is on the basis of constant exchange rates - consolidated sales would have remained on the level of same quarter of last year (-0.5%).

Quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 5.4%, up from the 20.5 million Euro recorded for the same quarter of last year to 21.6 million Euro. This was primarily the result of further improvements in the cost ratio (share of operative costs in sales) from 57.6% to 56.6%. While the exchange of foreign currencies had a negative effect on sales, and with it on the gross profit, the measures taken to hedge foreign currencies had a positive counter-effect on costs and other operating income. As a consequence, the influence of foreign currencies on EBITDA was more or less neutral.

The quarterly profit after taxes and minority interests was up from last year’s first quarter result of 6.2 million Euro to 6.9 million Euro, which is a plus of 11.3%.

As of January 31, 2007 net debt stood at 190.0 million Euro and was therefore significantly lower than the figure recorded at the end of the first quarter of 2006 (223.9 million Euro). In line with company strategy, inventories were reduced from 138.8 million Euro to 107.8 million Euro, as of reporting date.

The ESCADA business unit generated first quarter sales of 111.5 million Euro against 120.9 million Euro in the same quarter of the prior year (-7.8%, currency-adjusted: -3.9%). EBITDA improved by 9.6% from 14.6 million Euro to 16.0 million Euro.

The PRIMERA business unit improved quarterly sales by 6.8% to 56.7 million Euro (first quarter 2005/2006: 53.1 million Euro). Extra costs for the expansion meant that the PRIMERA unit’s EBITDA of 5.6 million Euro was marginally below last year’s figure for the same quarter (5.9 million Euro).

The Board of Management affirms its expectations for the full fiscal year 2006/2007, estimating Group sales to climb by a mid single-digit percentage point, and EBITDA to increase in excess of sales growth.

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ots Originaltext: ESCADA AG
Im Internet recherchierbar: http://www.presseportal.ch

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, CDAX, Classic All Share, Prime All Share
Börsen:  Frankfurter Wertpapierbörse / official dealing/prime standard
              Börse Berlin-Bremen / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Bayerische Börse / official dealing