Prada: 4% increase in 1st half-year sales
For the first half-year covering February to July 2015, Prada recorded 1.8 billion euros in revenue, up 4% compared to the same period in 2014, according to a press release published for its preliminary half-year results.
The Italian luxury group which, in addition to its leading eponymous brand, holds luxury clothing brand Miu Miu and footwear brands Church’s and Car Shoe, was notably subject to “a hostile economic environment in Asia.” But it did manage to compensate for this thanks to the good performance of its direct sales channel.
The growth recorded by Prada for the first six months of its financial year “is entirely due to retail sales, which more than compensated for the drop in wholesale sales,” the company said in its press release.
For the period, retail sales reached 1.5 billion euros, climbing 8% compared to the first-half of 2014 “benefitting from the positive effect of exchange rates,” said the company. To be noted, for this network, the excellent performance of the young Miu Miu line with sales jumping 19% (+6% beyond exchange rates) and the Church’s line (+19%).
However, wholesale sales dove 14 % at current exchange rates, to €248 million. A drop explained by “the multibrand partners’ rationalisation strategy,” says the group.
The growth in retail sales continued in Europe (+12% and +11% beyond exchange rates) thanks to higher tourist traffic and the return to consumerism in its domestic market.
Revenue went up 12% in Japan (+5% at a constant exchange rate), while at a current exchange rate sales went up 15% on the American continent and in the Middle East.
Asia-Pacific remains the low point for the Italian group, which reports “a negative trend, in line with that of the first quarter, nevertheless compensated for by a positive effect of the exchange rate,” the persistent weakness of Hong Kong and Macao constituting the main critical point in the region.
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