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Asia fuels Prada profit

 

Prada Fifth Avenue ManhatanItalian luxury house, Prada, has reported a modest profit rise of 0.3 per cent to 627.8 million euros ($866 million).

Revenue was highest in Asia Pacific, up 11.4 per cent, with Greater China the biggest contributor in the region. Growth also continued in Japan where sales increased 23.6 per cent, Prada said.

But the company blamed the slower growth elsewhere on exchange-rate volatility and a difficult economy in Europe which created an unfavourable business climate.

It recorded 10.9 per cent revenue growth in the US and 4.8 per cent in Europe.

The Prada brand achieved excellent results with revenue growth of 11.1 per cent, followed by Miu Miu with 1.2 per cent revenue increase and Church’s Car Shoe revenue decreased because of the downturn in the wholesale channel.

The company, through its CEO Patrizio Bertelli, remains confident even though the macroeconomic situation remains difficult.

“We are confident that the luxury goods sector will continue to grow and that, faced with rapidly changing consumer tastes and preferences, we will draw on our creativity and innovative capacity which enables us to interpret and, often, anticipate market trends,” he said.

Prada sells products in 70 countries worldwide through a network that includes 540 directly operated stores and a selected network of luxury department stores, independent retailers and franchise stores.

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