Prada Group defies crisis with impressive financial results
Prada Group reports a 36% increase in its turnover for the first half of 2012, reaching a total of 1,54 billion euros, with net profits up 59,5% representing 286,4 milioni di euro. Thanks to tremendous growth in Asia, sales of Prada Group rose 36,5%, a total of 1,55 billion euros . Prada registered positive results across all geographical regions Asia Pacific (+44%), Europe (+31%), U.S. (+30%) and Japan (+ 34%). Across the brands of the Prada Group, Prada registered the biggest increase (40%), followed by Miu Miu (+23%), Car Shoe (+16%) and Church’s (+15%).
“I think we must stay calm and be less hysterical. I don’t see such a dramatic market,” said Patrizio Bertelli, CEO of Prada Group. His comments on an analyst conference call come after Britain’s Burberry Group Plc said on Sept. 11 its sales growth in China was far slower than expected, spooking luxury investors and raising concerns that the entire sector was in danger of stumbling. China’s luxury market, on which global luxury powerhouses have become increasingly dependant, has been hit by weaker demand than expected due to slowing growth and a crackdown by Beijing on conspicuous consumption.
“Today, looking at numbers in August and September, we are convinced that we will meet the targets indicated in our budget,” Bertelli said, without giving details.
Analysts said Prada’s leather goods sales tend to be more resilient than apparel during an economic downturn and expect the company to outpace its competitors due to its strong positioning in handbags and its smaller store network. Prada said it would continue to focus on expanding its own retail network, which it sees as essential to long term growth, even if market conditions remain challenging.