Prada revenue down 1 percent for full year to 31 Jan 2015
For the year ended January 31, 2015, the Prada Group totaled 3.55 billion euro revenue, down 1% from the year before. The company faced a difficult situation in Asia-Pacific (-5%) while the Americas sales increased (+ 8%).The turnover is slightly lower than analysts’ estimates reported by Thomson Reuters SmartEstimate Analysts, who had expected a figure of 3.57 billion euro.
The retail channel generated in the 12 months 2.98 billion euro, substantially in line with the previous year. In Europe, in particular, the group that controls the brands Prada, Miu Miu, Church’s and Car Shoe recorded a sales drop of 1% due to weak domestic demand and lower tourist spending. The disappointing performance in the East can be explained, according to the company, with the deterioration in market conditions especially in Macau and Hong Kong (where the Prada Group is listed). A negative influence on the performance of Greater China,was also the fact that the budget did not take into account sales during the Chinese New Year, celebrated this year in February. In contrast, revenues in Japan, increased by 8% in the fiscal year. Despite the decline of Russian tourists, sales in the Middle East rose by 10%.
The Prada brand, which represents 83% of the total turnover of the group, has suffered a -1.7%. Miu Miu has scored a + 4% while Church’s and Car Shoe grew in double digits (+ 14.8% and + 12.7% respectively).
“The geopolitical scenario and the currency in which we work – says Patrizio Bertelli, CEO of Prada Spa – has been around for 2014 more uncertain and more complex than could have been expected. This situation, which led to a temporary break in the path of development of the group. However, did not change our growth targets medium to long term, we will continue to pursue adapting strategy and organizational structure in an evolving global context. The medium-term plan continues with targeted industrial investments in marketing and retail, necessary to ensure a strong future growth, always putting extreme attention to costs, in order to preserve margins and allow adequate returns on investment. ”