euro adhoc: ESCADA AG
Earnings Forecast
ESCADA lowers targets for fiscal year 2007/2008, primarily because of poor performance of PRIMERA

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Company Information


Munich, June 20, 2008 - The market environment of the ESCADA Group has worsened once more over the last few weeks, in particular in the business-sensitive fast fashion segment of the PRIMERA brands (apriori, BiBA, cavita, Laurèl). The retail chain BiBA registered a disproportionately strong sales decline in the second quarter of 2007/2008 (February to April) and in May. BiBA has already introduced targeted counter-measures to bring its performance back on track. At the core brand ESCADA the full price sell-through for the past collections Cruise and Spring/Summer 2007 was behind the comparative figures of previous year, whereas, as part of the restructuring program, the new collections hitting the stores in May and June are showing a recovery in sales.

Given the background of these developments ESCADA is adjusting its sales and earnings expectations for fiscal year 2007/2008 (reporting date: October 31): instead of the originally earmarked 51 million Euros for earnings before interests, taxes, depreciation and amortization (EBITDA) the Board of Management expects EBITDA to close out at around 37 million Euros. From today's perspective the Group result after taxes is set to be negative. Consolidated sales for 2007/2008 are expected to decline by a low double-digit percentage point.

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ots Originaltext: ESCADA AG
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Further inquiry note:
Viona Brandt
Tel.: +49 (0)89 9944 1336

Branche: Clothing
ISIN:      DE0005692107
WKN:        569210
Index:    SDAX, CDAX, Classic All Share, Prime All Share
Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse Berlin / free trade
              Börse Hamburg / free trade
              Börse Stuttgart / free trade
              Börse Düsseldorf / free trade
              Börse München / regulated dealing

Weitere Meldungen: ESCADA AG

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