Luxury fashion group Escada has met financial predictions for the 2004/05 financial year on good demand for the Escada brand.

According to preliminary figures, full-year sales grew 3.7% to EUR648.6m (US$770.2m) from EUR625.5m last year.

Escada brand sales increased 5.8% to EUR436.5m from EUR412.7m a year ago, while revenues for the Primera group rose by 2.8% from EUR205.8m to EUR211.5m.

2004/2005 earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 37.6% to EUR65.1m compared with EUR47.3m last year.

The positive effects of process optimisations and efficiency improvements could be felt in all business divisions of the group, Escada said.

Head of investor relations Viona Brandt told just-style: "We have achieved the results forecasted for the year, mainly because of the Escada brand's good sales performance.

"Sales were especially good in European markets such as Spain and Italy, as well as in Asia."

Brandt said that, since the company's restructuring two years ago, it had established "a good, solid cost base".

She added: "For the2005/06 financial year, we hope to boost sales and achieve an over-proportional increase in the group's EBITDA and net income."

The company will embark on a restructuring programme this year and next, which will see it refurbishing 70 out of its 200 own stores, Brandt continued.

She said that any expansion would be of the business's franchises, and not its own retail stores.