Prada sees full recovery to 2019 levels in December

Fashion

08 Jan `21

2 min read

The second half of 2020, despite being impacted by ongoing store closures averaging 9 per cent of the network, saw a progressive recovery in sales, culminating, for the retail sales, in a full recovery to 2019 levels in the month of December, the board of directors of luxury goods company Prada said on the performance of the Group in the second semester.

In the second half, the impact of the pandemic on the retail channel was limited to an average of -6 per cent (at constant exchange rates). Europe and Japan were penalised by the lack of tourist flows, while the Americas, the Middle East, Russia and, above all, Asia Pacific recorded positive performances, particularly China with +52 per cent, the Group said in its commercial and financial update.

"Wholesale sales reduced in line with the company strategy, launched in 2019 to protect the images of the brands and which has been maintained despite the difficult economic situation. Currently, the retail channel accounts for around 90 per cent of total sales. Careful management of quality and product mix has contributed to margin recovery and offset the deficit incurred in the first half, thus ending FY2020 with EBIT in positive territory. Finally, strict control of investment, in particular of stocks of raw materials and of finished products, has contributed to an improved Net Financial Position compared with the beginning of the year," the company said in a media release.

The second half of 2020, despite being impacted by ongoing store closures averaging 9 per cent of the network, saw a progressive recovery in sales, culminating, for the retail sales, in a full recovery to 2019 levels in the month of December, the board of directors of luxury goods company Prada said on the performance of the Group in the second semester.#

“I am very satisfied with how we have faced the serious difficulties of the year just ended and how, despite the persistent uncertainty which will likely continue for the next months, we have managed to deliver positive results. Thanks to the generous commitment of all Group staff, we were able to respond rapidly and consistently to market changes, which has been appreciated by all of our customers,” Prada CEO Patrizio Bertelli said.

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