Any Escada Fans?

[tortoisie]

Tragedy and Crisis in the 1990s

Tragedy and Crisis in the 1990s
The public offering enabled the company to go on a buying spree in the late 1980s. The company scored first with the 1987 purchase of Munster, Germany's Schneeberger. That company boosted the group's production capacity, and also gave it an entry into the private-label sector, particularly Schneeberger's focus on plus-sized women's dresses. Next up, Escada purchased Kemper, also based in Germany, which specialized in the production of women's clothing. The addition of Kemper also brought the company its first licensed brand, Cerruti 1881, produced under license from Cerruti starting in 1988. Escada also began developing other labels to be produced in-house to complement its growing Escada and Laurel lines. During the 1980s and into the early 1990s, the company launched or acquired a number of labels, including its own Crisca label, and the Apriori and Natalie Acatrini labels. The company's knitwear segment grew significantly in 1989 when the company reached an agreement to acquire 80 percent of California-based St. John Knits. Like Escada, St. John was a family-controlled company targeting the high-end and luxury segments. The acquisition not only gave Escada a manufacturing presence in the United States, it also boosted its presence in major department stores such as Nieman Marcus, Nordstrom, and Saks Fifth Avenue.
The St. John purchase was also part of a larger company strategy to establish itself as a force on the U.S. fashion scene. The company began adding new stores, doubling its U.S. presence to nine stores in the early 1990s, including a flagship store in Manhattan. The company also acquired New York's Badgley Mischka in 1992. The extension of the Escada range into the accessories and related categories led the company to boost its production capacity, and to expand its range of production expertise. The company continued to seek new markets in which to extend its brand, and in 1990 launched its own collection of perfumes and fragrances. This in turn led to the creation of Escada Beaute and the development of an in-house line of beauty care products. By the end of 1991, Escada's sales had climbed past DEM 1.4 billion ($897 million).

Tragedy struck the company in 1992, however, when Margaretha Ley died at the age of 56. To make matters worse, the company's sales snapped on the global recession of the early 1990s. Escada's rapid expansion finally caught up with the company, leaving it heavily in debt, even as a number of its operations sank into the red. By the end of 1992 the company's losses, including extraordinary items, neared DEM 120 million (approximately $60 million). Escada's losses continued into 1993, topping DEM 37 million ($17 million). In order to pay down its debt, the company sold off its 80 percent stake in St. John Knits that year. The company also moved its accessories production to France in 1994, forming the new subsidiary Escada Development in Paris.

Escada called in American designer Todd Oldham to help it relaunch its collection, now known as Escada Margaretha Ley. The company also continued restructuring, shutting down its unprofitable divisions, including closing most of its money-losing stores, especially under the Laurel brand. Into the mid-1990s, the company also restructured its operations into clearer divisions, including Escada Sports, to encompass its sportswear lines, and Escada Development for its accessories. The company continued to boost its Escada Beaute division, including through the acquisition of Parfum Gres Producions, based in Paris, in 1998.

Yet a new international economic downturn at the dawn of the 21st century forced Escada to rethink its strategy once again. In 2002, for example, Escada decided to exit the beauty care business, selling off Escada Beaute--including the license to its brand name--to Wella Group AG. The company also began plans to restructure its operations again, this time refocusing its operations around its core Escada label. In 2002, the company spun off its Laurel division as a separate company, Laurel GmbH. The company then announced its interest in selling Laurel, as well as its other noncore holdings, including Kemper and Primera. The latter division housed a number of Escada brands, including BiBa and cavita. Instead of carrying out the sale of Laurel, however, Escada regrouped Laurel under the Primera Group.

Escada's restructuring continued into 2003, with the announcement that it was dropping its lingerie collection, which had been produced in partnership with Huber Holding of Austria. Escada's restructuring efforts appeared to pay off, as the company, which had posted losses in the early years of the 2000s, moved into profits by the end of 2004. In that year, as well, the company boosted the Escada brand family with the launch of a new children's clothing collection, Escada Kids. Escada now turned its attention to boosting its position in the fast-growing luxury goods markets in the Far East, especially in the booming Chinese market. After nearly 30 years, Escada remained a force in the international designer clothing market.

[fashion-forum.org]

 

[tortoisie]

Escada Gains as FTD Says Apax Resumes Talks on Stake

Looks like they are still not doing so well...

Escada Gains as FTD Says Apax Resumes Talks on Stake
By Holger Elfes

April 24 (Bloomberg) -- Escada AG, whose luxury women's fashions cost as much as $7,000, rose the most in a month in Frankfurt trading after the Financial Times Deutschland said Apax Partners Worldwide LLP restarted talks to buy a stake.

The German clothing maker's shares advanced 1.10 euros, or 11 percent, to 11.40 euros in Frankfurt today, the most since March 26 and the biggest advance in Germany's small-cap SDAX Index. Apax, a London-based buyout firm, is talking with Munich- based Escada's largest investor, Russian millionaire Rustam Aksenenko, the newspaper said today. Representatives for Escada, Apax and Aksenenko wouldn't comment.

Escada said on April 9 that talks with Apax had ended as credit markets seized up, derailing financing for leveraged- buyout firms. The company later cut its profit and sales forecast, hurt by a weakening luxury market and a fashion range whose dark, heavy fabrics failed to appeal to shoppers.

"We see a possibility of a financial investor investing in the company at the current share price level," Bernd Muell, an analyst at DZ Bank in Frankfurt, wrote in a note to investors today. The analyst, who rates Escada "sell," added that a deal "would be probably only possible with Apax, given that Apax most likely knows the company well as a result of the long due diligence."

Rustam Aksenenko, who owns about 25 percent of Escada, is the 33-year-old son of the late Nikolai Aksenenko, who served as Russian railways minister under presidents Boris Yeltsin and Vladimir Putin. Russia's Finans Magazin estimated the younger Aksenenko's net worth at $150 million in 2007.

Escada spokesman Frank Elsner, declined to comment, as did Max Hohenberg, a spokesman for Finartis, Aksenenko's Geneva- based investment company, and Ira Wuelfing, a spokeswoman for Apax in Germany.

To contact the reporter on this story: Holger Elfes in Dusseldorf at [email protected].
Last Updated: April 24, 2008 11:47 EDT

 

[tortoisie]

Escada Falls Most Since at Least 1998 on Forecasts / Bloomberg

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Escada Falls Most Since at Least 1998 on Forecasts
By Holger Elfes

April 10 (Bloomberg) -- Escada AG fell the most in at least 9 1/2 years in Frankfurt trading after cutting its profit and sales forecast because of a weaker market for luxury women's fashions and ranges' failure to appeal to shoppers.

Escada slid 22 percent, the most since at least October 1998, according to data compiled by Bloomberg. The shares' drop, which erased 55 million euros ($87 million) of market value, was today's second-biggest in the 50-company SDAX Index. Moody's Investors Service said it may cut the clothier's credit rating.

The clothier hired a new chief designer in October, four months after ousting its chief executive officer. The former CEO and Escada's main investor, Russian millionaire Rustam Aksenenko, disagreed on strategy, according to press reports. The Munich- based company lowered the forecasts after private-equity firm Apax Partners Worldwide LLP opted against buying a stake.

"The reception of the collections of the new designer does not really seem to improve," Michael Kuhn, an analyst at Deutsche Bank in Frankfurt with a "hold" recommendation on Escada, wrote in a research report. "Hopes for a quick recovery have evaporated."

Annual earnings probably will fall 25 percent before interest, taxes, depreciation and amortization, Escada said yesterday after German stock trading had ended. Sales will drop by a higher single-digit percentage, the clothier said, while net income will be "slightly" positive, compared with its prior forecast for low-single-digit growth.

Stock Retreats
Escada dropped 3.20 euros to 11.15 euros, closing at the lowest price since November 2003. Kuhn lowered his price estimate for the stock, which fell 9.8 percent yesterday, by 30 percent to 14 euros. The shares have slid 41 percent this year.

"A weaker share price could make an entry of Apax or another financial investor more likely, but we don't expect discussions about this before the summer," Christoph Schlienkamp, an analyst at Bankhaus Lampe in Dusseldorf, Germany, wrote in a research report. Schlienkamp, who gives the stock a "hold" rating, cut his share-price estimate by 15 percent to 14.50 euros.

Spending power is ebbing in Europe and the U.S. as growth weakens, inflation rises and higher living costs sap incomes, while sliding stock markets are weighing on consumer confidence. That's cutting into purchases of higher-priced versions of goods from clothes to vehicles at companies such as sports-car maker Porsche SE, whose North American sales slid 24 percent in March.

Too Dark
Escada, which was named after an Irish racehorse, reported a third straight quarterly loss in February after customers shunned its winter fashions. The collection was selling poorly because colors were too dark and tissues were too heavy, the company had said in December.

The clothier will stick to its strategy, spokesman Frank Elsner said today by telephone. Finartis, Aksenenko's Geneva- based investment company, still backs its current managers, said spokesman Max Hohenberg. Ira Wuelfing, a spokeswoman for Apax in Germany, confirmed yesterday's Escada statement and declined to comment further.

Moody's probably will finish reviewing its B1 long-term rating for Escada in "the next few weeks," according to a statement released today on the credit-rating company's own news wire. The review affects about 200 million euros of debt.

Aksenenko, who owns a stake of about 25 percent, is the 33- year-old son of Nikolai Aksenenko, who served as Russian railways minister under presidents Boris Yeltsin and Vladimir Putin. Russia's Finans Magazin estimated Aksenenko's net worth at $150 million in 2007.

Escada hired former Valentino designer Damiano Biella as chief designer in October, four months after appointing Jean- Marc Loubier as CEO to succeed Frank Rheinboldt.

To contact the reporter on this story: Holger Elfes in Dusseldorf at [email protected].
Last Updated: April 10, 2008 13:03 EDT

 

[tortoisie]

...and I found out that Escada handbags are popular in Egypt.

Consumer spending boom attracts foreign investors to Egypt
By Will Rasmussen Reuters
Published: April 2, 2008

CAIRO: At the largest shopping mall in this city, Egyptians watch films as they sit in La-Z-Boy reclining chairs, shop for Escada handbags and sip coffee at Starbucks.

...more here!

 

[tortoisie]

DeParis and Marques Exit Escada by Marc Karimzadeh

What will happen next?

DeParis and Marques Exit Escada by Marc Karimzadeh
Posted Wednesday September 03, 2008
Last Edited Thursday September 04, 2008
From WWD Issue 09/03/2008

NEW YORK — There has been a management shake-up at Escada USA Inc.

Lawrence DeParis, the U.S. chief executive officer, resigned from the German company’s U.S. division effective Aug. 31, and Christian Marques, chief financial officer, is leaving the company on Oct. 31.

“After 20 years with Escada, and another recent change in global leadership, we…decided this was the right time for a change and it gives me the opportunity to explore new professional challenges,” DeParis said.

Marques said, “My plans are to assist the new management team in making a successful transition to Escada. After that, I will..."

 

[StephlovesLoubi]

Any fans left?

 

[Deleted member 7575]

Sarah Palin is an Escada fan.

 

[Crying Diamonds]

I didn't know Jonathan Saunders did a line for Escada Sport? He gets around - he was the creative director at Pollini only a while ago.
His designs really add some colour, freshness and youth to the brand.

 

[StephlovesLoubi]

I was in a Escada boutique on wednesday. they had beautiful things. that's why I'm wondered nobody posts here anymore. I mean the shootings just look... well... bad but their items are really beautiful and based from those pics very underated!

 

[Squizree]

Escada is practically bankrupt and they can't shoot a decent campaign if it killed them. The problem with this brand is that it only really appeals to rich trophy housewives who do nothing all day but tan and gossip. Ivanka Trump comes to mind.

 

[StephlovesLoubi]

I know. Too bad. They have SO MANY beautiful pieces!