Luxury brand Escada has posted a net loss of EUR75m for its 2002-03 fiscal year, compared to a profit of EUR4.4m in the year prior.

The company, which recently axed a fifth of its workforce and closed stores to minimise losses, also reported sales of EUR621m for the 12-month period, down from EUR773m in the previous fiscal year.

Despite the poor results, however, CEO Wolfgang Levy said Escada's restructuring program was on track to return the company to profit in 2003-04.

"Even without a worldwide economic pickup, our new lean platform will give us a chance to return to after-tax profitability at the group level as early as (next year)," he said.

Escada had originally predicted full-year losses of between EUR60m and EUR80m.