×
36 690
Fashion Jobs
ALICE AND OLIVIA
Sales Supervisor - Austin
Permanent · Austin
ALICE AND OLIVIA
E-Commerce Customer Service Manager
Permanent · New York
JCPENNEY
Business Support Specialist - Communications
Permanent · Plano
JCPENNEY
Buyer - Home (Entertaining & Tabletop)
Permanent · Plano
JCPENNEY
Multi District Human Resources Business Partner
Permanent · Jefferson City
JCPENNEY
Product Manager - Customer Account & Loyalty
Permanent · Plano
TIFFANY & CO
Inventory Control Analyst
Permanent · Parsippany-Troy Hills
ULTA BEAUTY
Salon Manager-Hickory Point Mall
Permanent · Forsyth
ULTA BEAUTY
Salon Manager-White Marlin Mall
Permanent · Ocean City
ULTA BEAUTY
Prestige Sales Manager-Friendly Hills Marketplace
Permanent · Whittier
ULTA BEAUTY
Salon Manager-Pelican Plaza
Permanent · Sarasota
ULTA BEAUTY
Store Operations Program Manager - Strategic Initiatives
Permanent · Bolingbrook
ULTA BEAUTY
Retail Operations Manager-Fischer Marketplace Shopping Center
Permanent · Apple Valley
ULTA BEAUTY
Retail Sales Manager - Market Street Flowood
Permanent · Flowood
ULTA BEAUTY
Salon Manager-Walnut Square Shopping Center
Permanent · Dalton
ULTA BEAUTY
General Manager-Coolsprings Galleria
Permanent · Franklin
ULTA BEAUTY
Salon Manager-Poplar Creek Crossing
Permanent · Hoffman Estates
ULTA BEAUTY
District Manager-San Francisco East
Permanent · San Francisco
BANANA REPUBLIC
General Manager - Willowbend Mall
Permanent · Plano
GUESS
Account Executive
Permanent · New York
GUESS
IT Project Manager
Permanent · Los Angeles
GUESS
Senior Financial Analyst
Permanent · Los Angeles

Prada shares soar as China demand spurs return to sales growth

By
Reuters
Published
today Mar 12, 2018
Reading time
access_time 2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Shares in Prada surged 14 percent on Monday after the Italian luxury goods maker said it had stemmed a slide in sales in the second half of 2017 and it expected to see growth continue this year.



Prada - Fall-Winter2018 - Menswear - Milan - © PixelFormula


Criticised as slow to respond to new trends, particularly for informal clothes and shoes, Prada has seen profit fall since 2014 even as competitors such as Kering and LVMH have boosted sales. Core profit dropped 7.3 percent last year to 588 million euros.

New products, estimated to be about 60 percent of its total offerings, as well as robust demand from Chinese consumers, had helped to pull the company out of a 'grey area', it said.

The Hong Kong-listed stock jumped to HK$37 in Monday trade, adding $1.5 billion to its market capitalisation. At one point it climbed as high as HK$40.

The firm saw double digit organic sales growth in Greater China in the second part of last year and the first month of 2018, Alessandra Cozzani, Prada’s chief financial officer, said in a conference call on Friday.

Prada generates over 30 percent of revenue from Chinese consumers at home and abroad. It is seeking to burnish its brand in China with a new residence project in Shanghai for fashion shows and exhibitions, and is putting more effort into e-commerce, an area where it has lagged rivals.

It also appointed a new global digital director last year to drive online sales globally - a change from 2014, when CEO Patrizio Bertelli said it would focus on physical stores - and has since been forging tie-ups with bloggers in China to attract young consumers.

“We believe the worst is gone,” said Walter Woo, analyst at CMB International Capital in Hong Kong, who raised his rating on the stock to a ‘buy’ and noted that the firm’s forecast for mid to high single digit sales growth in 2018 was above market estimates.

Prada is one of the few luxury brands available to invest in Hong Kong which helped spur its dramatic gains on Monday, said Alex Wong, a director at Ample Finance Group in Hong Kong.

“We are quite bullish on luxury segment overall, particularly when China continues to lead the growth,” he added.

© Thomson Reuters 2019 All rights reserved.