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Prada loses €240m despite revenue growth

Prada Fifth Avenue ManhatanPrada Group has returned to revenue and margin growth according to its half yearly earnings report.

The fashion retailer saw net revenues grow by €1.5 billion, at a 9 per cent growth rate compared to 2017, with solid performance in both retail and wholesale sectors (up 10 per cent and 8 per cent respectively).

Total net income amounted to €106 million, an 11 per cent increase compared to 2017 with margins of 6.9 per cent, leaving the company’s net financial position at minus €240 million following a €186 million dividend payment.

“We are always working to reshape the Prada Group to adapt to the rapid changes in society and to interpret the spirit of new generations without losing our brand integrity,” said CEO Patrizio Bertelli.

“Today the results of this transformation are visible and supported by many positive signs from the market, confirming the soundness of our strategic choices.

“We will continue our path of sustainable growth, based on the creative leadership of our brands and the attractiveness of our retail network, where we see great potential to be unlocked through integration with digital technologies.”

The group saw strong performance in the Asia-Pacific region (14 per cent) driven by significant sales growth in Greater China of 17 per cent.

The US returned to sales growth (8 per cent) due to recovering local consumption despite unfavourable exchange rates for most of the period, with Japan (9 per cent), Europe and the Middle East ( 7 per cent each) also finding positive performance.

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