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.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)