BERLIN — Escada Group, the Munich-based luxury fashion house, pared its third-quarter loss on a revenue gain of 3.7 percent gain.
For the three months ended July 31, Escada reported a loss of 2.6 million euros ($3.14 million), or 15 euro cents a diluted share (18 cents), compared with last year’s loss of 44.2 million euros ($51 million), or 6.24 euros ($7.20) a share. The figures have been converted at average exchange rates for the corresponding periods.
Restructuring charges pushed the company to a loss of 3.7 million euros ($4.47 million), the majority for the final settlement with the bankruptcy administrator of Féraud GmbH, Escada said in a statement. The fashion house previously held an equity stake in Féraud. It agreed in July to make a final payment to the company in “the lower single-digit millions,” bringing its dealings with Féraud to a close.
Group revenue for the quarter improved to 144.9 million euros ($175.9 million), from 139.7 million euros ($161.1 million) a year ago.
Chief executive officer Wolfgang Ley said in a conference call that the overall trend for Escada was positive in the face of weak economic conditions. Women’s wear retailers have had a hard fight even in the luxury segment, he noted, adding that consumer restraint in Germany has spilled over to neighboring markets.
For the first nine months of the fiscal year, Escada reported no net income. Last year, by comparison, the company recorded a net loss of 51.5 million euros ($56 million), or 7.27 euros ($7.91) a share. Group revenue for the period inched up 1 percent to 450.9 million euros ($550.6 million), from 446.3 million euros ($485.3 million), last year.
— Melissa Drier
This story first appeared in the September 8, 2004 issue of WWD. Subscribe Today.