euro adhoc: ESCADA AG / Quarterly or Semiannual Financial Statements / ESCADA after nine months with continuing positive operating performance (E)

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Aschheim near Munich, September 7, 2004. - Also for the third quarter of the 2003-04 fiscal year consolidated revenues and operating results of the ESCADA group were higher than the corresponding figures for the comparable prior-year period. Although retail markets in general continued to show weakness, Group’s consolidated revenues rose 3.7%, from EUR 139.7 million in the third quarter of the previous fiscal year to EUR 144.9 million in the third quarter of the current fiscal year. Compared to the prior-year quarter, earnings before interest, taxes, depreciation and amortization (EBITDA) improved from minus EUR 10.4 million to plus EUR 8.7 million, reflecting the ongoing improvement in operating performance. The ESCADA Group reported a quarterly loss before minority interests of EUR 2.4 million (third quarter 2002-03: minus EUR 44.1 million). This was mainly due to restructuring expenses of EUR 3.7 million, the bulk of which went to the final settlement with the insolvency administrator of Féraud GmbH, in which the Group had formerly held an equity stake.
Consolidated Group’s revenues for the first nine months of 2003-04 were EUR 450.9 million, 1.0% higher than the corresponding prior-year figure (EUR 446.3 million). On a currency-adjusted basis, the Group posted a 4.1% increase in revenues and the core brand ESCADA even a 5.9% increase. EBITDA for the first nine months of the current year improved to plus EUR 33.7 million (after minus EUR 1.3 million in the prior-year period), fully meeting the Group’s planning targets. After restructuring expenses of EUR 5.8 million, the profit after taxes and before minority interests came to EUR 0.8 million (as compared to the net loss of EUR 51.5 million in the prior-year period).
The ongoing cost reduction program is progressing according to plan. By the end of the third quarter, the Group was able to realize savings of EUR 31.9 million, on a comparable prior-year basis. By the end of the fiscal year, the entire budgeted savings for 2003-04 of approximately EUR 40 million will have been achieved.
In view of the fourth quarter and despite the extraordinary charges for Féraud, management continues to expect that Group revenues will remain stable for the fiscal year 2003-04 as a whole. EBITDA will increase significantly and the Group will show an after-tax profit. In terms of value, orders on hand at the end of the selling season for the 2005 Spring/Summer collection were up approximately 2 percent (in euros) from the prior-year figure. This is the first growth since the selling season for Spring/Summer 2002. Orders on hand raise expectations that the Group’s good operating performance will continue in the first half of 2004-05 - and by that point the cost base will be reduced even further.

Investor Relations, Tel.: + 49 (0) 89 - 99 44 13 36;
Frank Elsner Kommunikation für Unternehmen GmbH, Tel.: + 49 (0) 54 04 - 91 92 0

Further inquiry note:
Viona Brandt
Tel.: +49 (0)89 9944 1336
Tel: +49 (0)89 9944 1336
FAX: +49 (0)89 9944 1500

Emittent: ESCADA AG Margaretha-Ley-Ring 1 DE-85609 München Tel: +49 (0)89 9944 1336 FAX: +49 (0)89 9944 1500 Email: WWW: ISIN: DE0005692107 WKN: 569210

end of announcement euro adhoc

Indizes: CDAX, Classic All Share, Prime All Share, Prime Standard, SDAX
Börsen: official dealing Bayerische Börse, Frankfurter Wertpapierbörse; free trade Hamburger Wertpapierbörse, Börse Düsseldorf, Baden-Württembergische Wertpapierbörse
Branche: Clothing
Sprache: Englisch