Prada’s first-half profit drops 20.6 per cent
Prada Group said on Friday its net profit for the six months ended July 2014 amounted to 244.8 million euros ($314.9 million), down from 308.2 million euros a year earlier. Second-quarter net profit was 139.5 million euros, according to Reuters’ calculations, lagging analysts’ average forecast of 172.7 million. That compared with net profit of 170.1 million a year earlier and 105.3 million in the previous quarter.
The Americas market shows some positive signs, sustained by both domestic consumption and a greater contribution from tourist spending. The Group’s retail channel recorded 8.2% growth at current exchange rates and 14.2% growth at constant exchange rates in this geographical area.
For Prada, Europe remains penalized by weaker tourist flow and by the negative general economic environment which has hit domestic consumption. Sales on the Japanese market grew by 9.8% at current exchange rates. The Middle East has performed well with growth in the first half of the year standing at 16.1% at current exchange rates.
The Prada brand, which represents around 83% of group sales, achieved 4.6% revenue growth at current exchange rates. The men’s segment performed particularly well, in line with Group strategy focused on achieving growth for men’s collections in all geographical areas.
Miu Miu continued to grow with a +7.1% increase at constant exchange rates (+2.9% at current exchange rates). Except in Europe, the brand continues to record excellent rates of growth on all markets. Church’s also did well with +12.4% growth at constant exchange rates (+13.8% at current exchange rates), as did Car Shoe with +3.6% growth at constant exchange rates (+2.7% at current exchange rates).