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Prada reports booming financial results, with 50% growth in profits

 

Miu Miu newly opened flagship store in Beijing (Sanlitun)

Prada Group reports consolidated revenues at nine months at  2,339 million euros, up by 35% compared to the first nine months of prior year and confirming the trend already seen in the first half of the year.EBITDA, representing 31% of consolidated net revenues, reached € 727.9 million with a 50% increase on 2011.EBIT amounts to € 612.5 million, 26% of consolidated net revenues and up by 56% on the first nine months of prior year.

Prada Group reports an impressive 50% increase in net profit from 273.2 million euros in 2011 to 408.6 million euros and represents 17.5% of consolidated net revenues.

Prada’s retail channel made the greatest contribution towards revenue growth. Sales made by Directly Operated Stores generated revenues of Euro 1,917 million, a 43% increase. Revenue growth has been achieved by both new stores – 63 new stores have opened in the last 12 months – and existing stores which, at constant exchange rates, have continued to register strong growth : +18%, Same Store Sales Growth. The wholesale channel generated net revenues of €390 million and a 6% increase on prior year.

All of the Group’s brands performed well, especially Prada which enjoyed 39% growth. Meanwhile, Miu Miu grew by 21%, Church’s by 15% and Car Shoe by 8%.

Double digit growth – also at constant exchange rates – was achieved on all markets including Europe where revenues grew by 33%thanks to the steady flow of tourists and Asia Pacific where revenues increased by 41%. Highly positive results were also achieved on the American market with revenues up by 28% and in Japan where revenues grew by 27%.

In terms of product categories leather goods grew by 51% and now account for 63% of consolidated sales; meanwhile clothing and footwear both recorded increases of 15%.

Prada Group has pursued its aggressive international expansion, entering new markets such as Brazil, Mexico, Morocco and Ukraine, while Miu Miu has entered the market in Brazil, Mexico, Morocco and Kuwait. At October 31, 2012, the retail network comprised a total of 428 Directly Operated Stores, including 270 Prada stores, 108 Miu Miu, 44 Church’s and 6 Car Shoe; 13 more stores have been opened in the five weeks since October 31.

 

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