Prada reported a strong healing in operating revenues in the second half of 2020 thanks to skyrocketing Asian sales and an e-commerce push integrated with stringent controls over costs and financial investments.
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Prada MEDICAL SPA | Coronavirus | style sellers
Reuters.
Last Upgraded at March 10, 2021 21: 15 IST
( Reuters) – Italian fashion group Prada reported a strong recovery in running revenues in the 2nd half of 2020 thanks to skyrocketing Asian sales and an e-commerce push integrated with stringent controls over expenses and investments.
The favorable sales trend likewise continued into the first months of 2021, the Milanese high-end brand stated on Wednesday.
Full-year incomes fell by 24%to 2.42 billion euros ($ 2.9 billion) thanks to an improvement in the second half after a 40%downturn in the first 6 months.
Lockdown measures to stem the spread of coronavirus led to around 18%of the group’s shop network being closed on average throughout the year and also struck tourist.
President Patrizio Bertelli said Prada responded quickly to market changes, enhancing the relationship with regional consumers whose usage in the 2nd half of the year nearly totally balanced out the lack of travelers.
” All of these initiatives caused a complete recovery in the second half to pre-pandemic profitability levels,” he stated in a statement.
The healing in retail sales, which account for around 90%of Prada’s overall, was driven in the 2nd half by mainland China ( 52%), Taiwan ( 61%), Korea ( 22%) and also by the Americas ( 4%). Japan and Europe suffered from the absence of tourists and prolonged lockdowns.
The pandemic has pushed the whole luxury industry towards digital sales. Prada’s e-commerce more than tripled versus 2019 levels, the Hong Kong listed company said.
” These results provide us confidence to deal with the upcoming rebound, as quickly as the most important stage of the pandemic will end.”, Bertelli stated.
Revenues before interest and taxes (EBIT) totalled 20 million euros in the full-year, following a 216 million euro EBIT in the second half, broadly in line with the very same period of 2019, after a 196 million euros operating loss in the very first six months.
Experts had anticipated incomes at 2.44 billion euros and an EBIT of 13.8 million, based on a Refinitiv analyst agreement.
Experts did not anticipated any dividends, however Prada’s board decided on a 0.035 euros per share payment after avoiding any dividend payout last year.
($ 1 = 0.8411 euros)
( Reporting by Claudia Cristoferi, modifying by Jane Merriman)
( Only the heading and picture of this report may have been remodelled by the Service Standard staff; the rest of the material is auto-generated from a syndicated feed.)
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