BERLIN — Escada officially issued a profit warning for fiscal 2008 late Friday, the fashion firm's second one this year.
Escada's warning confirms a WWD report last week that such a statement was imminent.
Citing poor performance of its more midmarket Primera division, in particular the Biba retail chain, Escada lowered earnings and sales targets for the fiscal year ending Oct. 31. The troubled German fashion house is projecting earnings before interest, taxes, depreciation and amortization to reach about 37 million euros, or $57.3 million at current exchange, compared with its April EBITDA forecast of 51 million euros, or $78.7 million. Escada originally had expected single-digit growth in both EBITDA and sales.
According to Friday's announcement, consolidated sales are expected to decline by a low double-digit percentage and the group is expected to register an aftertax loss.
Escada made the announcement after the market closed. The firm's shares had another topsy-turvy day, first gaining 12 percent on mounting speculation that Tchibo co-owner Michael Herz was taking a stake in the fashion company. However, by the end of the day, the shares closed down 6.8 percent at 14.44 euros, or $22.28.
Widespread reports say Herz has taken a 12 percent stake in Escada, though neither Herz, nor Escada's largest shareholder, Rustam Aksenenko (who has about a 27 percent stake), nor Escada confirmed the move.
The original report, in Friday's edition of the German financial daily Handelsblatt, said Herz had secured the 12 percent via various companies, and added that the stake was dependent on a 10 percent capital increase. The 30 million euros, or $46.2 million, raised is to be devoted to restructuring, the report said.
There has been continued speculation over the last few months that Escada would make management changes, with Hugo Boss former chief executive officer Bruno Sälzer replacing Escada ceo Jean Marc Loubier.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty