BERLIN — Escada AG’s bottom line is back in the black as the German fashion house’s stringent cost-cutting program bolstered results.
In preliminary figures released Tuesday, Escada reported a consolidated aftertax profit of 4.5 million euros, or $5.5 million, for the year ended Oct. 31, 2004. This compares with a loss of 77.6 million euros, or $86 million, the previous year, and includes a one-time restructuring charge of 5.4 million euros, or $6 million, which mainly relates to the divestment of Escada’s 90 percent stake in Louis Féraud GmbH .
All dollar figures are calculated from the euro at the average exchange rate.
Consolidated earnings before interest, taxes and amortization reached 47.4 million euros, or $58 million, up from 8.4 million euros, or $9.3 million, the year previously.
Escada attributed the improved earnings performance to its cost-cutting program, which achieved savings in 2003-2004 of almost 45 million euros, or $55 million. This surpassed the original target of 40 million euros, or $48.9 million. The restructuring program involved 850 job cuts, about 550 in the core Escada business, and the closure of 19 Escada and 19 Primera shops.
Consolidated sales inched up 0.8 percent for the year, to 625.5 million euros, or $765 million. Adjusted for currency effects, sales rose 3.5 percent, the company said. Sales of the Escada brand, which had been down 13 percent in 2002-2003, were up 0.7 percent to 413 million euros, or $505.1 million. The company noted a higher full-price sell-through rate at its own and franchise shops boosted performance here.
Wolfgang Ley, chief executive officer of Escada AG, said the coming year would be marked by a concentration on sales and growth in the group’s own retail trade, as well as expansion of wholesale sales and distribution activities, with an eye on the strategic key markets of China, Eastern Europe and Japan, and the hedging and stabilization of business in the U.S.
The company plans to optimize existing collections, improve gross margins by better sourcing and intensified use of state-of-the-art manufacturing methods, and continue reduction of costs and improved synergies.
Ley said he expects group revenues to increase on a euro basis in fiscal 2004-2005, a significant growth of pretax earnings and a “disproportionate improvement” in consolidated aftertax profit.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast