Prada exceeds 2012 full year profit expectations with 45 percent increase
For the 12 months ended January 31, Prada SpA reports a net profit increase of 45 percent to 625.7 million euros ($809 million) from 431.9 million euros a year earlier. Analysts expected profit of 618 million euros, according to the average of 29 estimates compiled by Bloomberg.
Asia (except Japan) registered the highest sales increase for Prada in 2012, with 36%, followed by Europe 23%, Italy 16% and the U.S. with 15%. Prada Group distribution is mostly through directly operated stores (82% in 2012, compared to 72% in 2011), the rest being wholesale. Net sales for the full year 2012 reached 3,25 billion euros, a 29% increase compared to 2011.
Car Shoe is the only brand of Prada Group to register a negative EBTIDA in 2012 (-3%). Car Shoe also had the slowest sales growth, of just 1% in 2012 compared to 2011.
Prada Group also reported an annual advertising budget of 150 million euros in 2012, the highest spending among the top 3 European listed luxury companies.
As for Prada’s outlook for 2013, the company said in a statement; “The group remains confident that the strategy which has been coherently deployed in recent years with regard to brand positioning and retail expansion will again be a key success factor for the forthcoming fiscal year, even in a general economic environment that remains challenging,”