BERLIN — Escada AG is off to a good start if first-quarter results are an indication of what the 2005 fiscal year might be like.
The German fashion house reported on Thursday that its first-quarter consolidated profits, after taxes and minority interests, had almost doubled to $7.8 million (5.9 million euros), compared with $4.1 million (3.1 million euros), for the same year-ago period. All dollar figures are calculated from the euro at average exchange rates.
Earnings before interest, taxes, depreciation and amortization rose by 46.4 percent to $26.9 million, (20.5 million euros), from $18.4 million (14 million euros), for the same period last year. Revenues for this quarter gained 8.1 percent to $210.3 million (160.1 million euros) from $194.6 million (148.1 million euros). After an adjustment for changes in foreign-exchange rates, growth was 10.3 percent.
Sales of the company’s core business, the Escada brand, gained 9.7 percent to $144.4 million (109.9 million euros) from $131.6 million (100.2 million euros). As far as the group’s other brands, such as apriori and Laurel, revenues for the first three months increased by 6.6 percent to $65.4 million (49.8 million euros) from $61.4 million (46.7 million euros).
One of the company’s goals this year is a bond issue for a projected $229.9 million (175 million euros), which would replace its existing bank debt and, over the long term, help improve Escada’s capital structure.