Italian luxury fashion company Prada announced its preliminary results for the first half of the fiscal year yesterday. Net revenue rose by 11.6 percent to 1.73 billion euro from 1.55 billion euro in the previous year. With an increase by 17.7 percent, revenue in the Asia-Pacific region grew by almost one fifth. At plus 13.5 percent, the US also showed higher-than-average growth.
The active demand for luxury clothing in Asia and especially Greater China worked out for Europe as well: Here, the company attributed the increase of revenue by 5.7 percent to the purchases by numerous tourists.
Asia, US and retail drive Prada’s growth
Prada’s own retail stores contributed to an increase of retail sales by 15.6 percent (same store sales by 7 percent), whereas wholesale reported a decline in sales by 3.5 percent. The company said this was mainly due to “the selective strategy adopted by the group, which led to a reduction in the number of wholesale partners by more than 100″.
“[We will] continue to base our long-term growth strategy on the balanced international expansion of our retail network, achieving efficiency in all areas and constantly seeking quality and stylistic innovation,” confirmed chief executive Patrizio Bertelli the good retail results and strategy.
During the first half of the year, Prada opened 30 new stores, bringing its total number of stores to 491 as of 31st July. Of those, the company operated 301 Prada stores, 133 Miu Miu stores, 8 Church’s stores and Car Shoe stores.
In terms of brands, the company’s flagship brand Prada fared best with an increase of sales by 14.3 percent; Church’s showed an increase by 5.1 percent, Miu Miu by 3.7 percent and Car Shoe recorded an unspecified loss. Prada will announce its complete results for the first half of the fiscal year on 17th September.
Source: Fashion United, august 2013