PRADA’s revenues increase by 26% in the first quarter
Italian luxury brand PRADA announced this week an increase of 26% in its revenues in the first quarter of this year, which runs February to April. Total revenues amounted to EUR 366 million with an operational margin of EUR 64 million, compared with EUR 11 million in the previous quarter. The company is attributing current successes to its focus on its own boutiques–and away from the business of wholesale, which is still a weak spot in retail. Sales increased by a whopping 62% in Asia, 33% here in the US, and an impressive 18% in Europe, Prada’s most mature market.
These are the first positive results reported by PRADA, showing clear signs of recovery.However, PRADA has been lagging behind direct competitors Gucci and Louis Vuitton, especially in its international expansion strategy in the past two years.