Recovering China sales boost profits at Prada

LUXURY Italian group Prada said on Thursday (Jul 27) said sales and profits rose strongly in the first half of this year thanks to continued recovery of sales in China and strong European demand.

Net profits soard 62 per cent from the same period last year to 305 million euros (S$446.3 million), while revenue rose 17 per cent to 2.23 billion euros, driven by strong retail sales, according to a press release.

Retail sales of clothing and footwear rose by 36 per cent and 20 per cent, respectively, with leather goods up 12 per cent, at constant exchange rates.

Prada Group chief executive Andrea Guerra said the first quarter of 2023 had been “solid” followed by “another positive quarter” to June.

“For the current year, we retain our ambition to deliver solid, sustainable and above-market growth,” he added in the statement.

The Prada brand remains “on a sound trajectory” while sister label Miu Miu had “a remarkably strong performance, thanks to a strengthened identity and increasing visibility”, Guerra said.

Miu Miu, which is aimed at younger clients, saw retail sales jump by 50 per cent at constant exchange rates, compared to 18 per cent at Prada.

In the Asia-Pacific market, Prada’s largest, retail sales rose 21 per cent to 716 million euros.

The main driver of the growth came from mainland China, Hong Kong and Macau, after the lifting of Covid restrictions in China, the group said.

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Prada also highlighted sales in Japan, up 38 per cent, thanks to the group’s investments in distribution.

Sales in Europe rose 20 per cent to 582 million euros, driven by “healthy local demand and high levels of tourism”, the press release said.

In the Americas, retail sales remained stable at 361 million euros. AFP