German-based fashion giant, Jil Sander Group, today lowered its outlook for 2001 and predicted a pre-tax loss of between six and nine million euros, due to the economic downturn.

Back in August, the high-end clothing maker said it would either break even on a pre-tax basis or post a slight pre-tax loss in 2001 due to a fall in demand for its products.

"It remains difficult to foresee (how long) the reluctance of consumers to buy luxury goods will persist," the company said. "As a consequence of the world economic downturn due mainly to the terrorist attacks of September 11 and the war against terrorism, sales in the Jil Sander shops are lower than planned."

Meanwhile, the group also announced it will receive a capital injection of up to 20m euros from Prada Group N, which acquired Jil Sander in 1999.