Escada announced significant drops in sales and profit for its fiscal year ended 31 October 2008, with the bad news accelerating in the fourth quarter.  While sales for the year were down 15.7%, "clear consumer restraint" in the fourth quarter contributed to a 17.7% drop in the last period.

For the year, earnings before interest, taxes, deprecation and amortization (EBITDA) for the Escada brand of €18 million was down 63.3% compared to 2007.

"Both customers and commercial partners are buying very reluctantly at the moment," said CEO Bruno Salzer.

Corporate inventory ballooned to €120.8 million at 31 October 2008, a 33% increase of prior year.

The disappointing results come amidst efforts to sell the company's Primera unit.