Despite the strong impact of the coronavirus crisis, Italian fashion group Prada announced on Tuesday that it will close 2020 with operating profit. This is because turnover and profitability improved significantly in the second half of the year.
At the start of the year, the Milan luxury brand opted for unplanned financial communication, before disclosing the results for the year in March, due to the extraordinary situation and the uncertainty created by the Covid-19 pandemic. .
The fallout from the health crisis caused a 40% drop in like-for-like sales in the first half, resulting in an operating loss of 196 million euros.
But the group has apparently largely raised the bar. “I am very satisfied with the way we have faced the serious difficulties of the year which has just ended and with the way in which, despite the lingering uncertainty that will likely continue over the next few months, we have succeeded in produce positive results, explains Managing Director Patrizio Bertelli. Thanks to the generous commitment of all of the group’s employees, we were able to respond quickly and systematically to market changes, which was appreciated by all of our staff. clients.”
Prada says that in the second half of 2020, on average 9% of its store base worldwide was closed. However, the group explains that it has seen a gradual recovery in its sales, even arguing that its retail sales, representing 90% of its activity, have returned in December to the level of 2019.
Like the other big luxury players, this recovery is linked to the dynamism of certain markets. In its second half, Prada announces -6% in its activity retail compared to the previous year. “Europe and Japan were penalized by the lack of tourist flows, while the Americas, the Middle East, Russia and especially Asia Pacific recorded positive performances, especially China with + 52%”, details the group.
Prada has 637 outlets in 70 countries and in 2019 had a turnover of 3.336 billion euros.
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