Sander reports loss

German luxury brand Jil Sander AG has reported a net loss of EUR34.6 million (GBP 23.5 million) for 2004. Sander, which is owned by the Prada Group, has been adversely affected by poor exchange rates, store operating costs and expenses from product development.

Full year sales climbed 10 per cent to EUR137.5 million, up from EUR124.9 million in 2003. This was mainly due to expansion in outlets in Eastern Europe.

Chief Executive Officer of Jil Sander, Gian Giacomo Ferraris, said that the company would take the necessary action to turn the situation around. The plan is to launch an "aggressive restructuring plan" to stimulate efficiency throughout the firm and reverse its fortunes.