German fashion house Escada AG on Monday reported a full-year net profit of 3.9 million euros compared to a loss of 24.2 million euros in the year-ago period.

The company, which has been busy selling off non-core businesses in 2002, said for the 12 months to October 31, earnings before interest and tax rose to 25.7 million euros from a loss of 17.1 million euros in 2001.

Group sales fell to 773 million euros from 846 million euros last year but allowing adjustments for consolidation, sales fell only four per cent as "a consequence of the ongoing difficult environment in the international luxury goods market".

Escada said it sees core business sales to "remain roughly stable or grow slightly" in fiscal 2003 and sees a full-year net profit of 10-15 million euros.