MILAN, Jan. 5 (Class Editori) - China drove Prada's sales in the second quarter of last year, by allowing the brand from Milan to rebalance turnover and profit margins in a very difficult year and, especially, to close the financial year 2020 with a positive EBIT. This has been announced by the group listed in Hong Kong with an unexpected note, released in order to provide updates on the business performance recorded in the timespan between the communication of the first quarter's data, in July, and that of the entire fiscal year, scheduled for next March.
In the second semester of 2020, even though still affected by the closing of some stores (about 9% in overall), sales increasingly started to recover; in December, they managed to reach the same levels of retail revenues recorded in 2019. This channel, in the abovementioned period, has cushioned the pandemic impact with a -6% at constant exchange rates, with Europe and Japan affected by the lack of tourism flows, while Americas, the Middle East, Russia and, especially, the Asia Pacific area have recorded positive performances, such as China with +52%.
After the business strategy launched in 2019 in order to safeguard the brand's image, which has been implemented also in this difficult situation, wholesales have decreased, by leading the percentage of retail revenues close to 90%.
"I am very proud of how we faced the difficulties of the year which has just ended and, despite the persisting situation of uncertainties which will be lasting in the following months as well, we have been able to reach positive results", as Patrizio Bertelli- CEO of the company- has underlined. "Thanks to the kind commitment of the entire group, we have been able to give a fast and coherent answer to the market change, which has been appreciated by all our customers".
A careful quality management of the products' mix has contributed to reach a recovery of profit margins, in order to allow the company to cover the deficit recorded in the first semester and close the financial year with a positive EBIT. The investments' control, particularly that of storehouse levels, raw materials and finished product, has lastly allowed to improve the net financial position compared to the value recorded at the beginning of the year. The bond, once announced, recorded a value of 49.4 Hong Kong dollars, decreasing by 0.3%. (All rights reserved)
(Source:Class Editori)
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