Prada Group H1 FY20 revenues drop to €938 mn

01 Aug '20

2 min read

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Prada Group, an Italy-based global leader in luxury goods industry, reported decline in its net revenues to €938 million in first half (H1) period for fiscal 2020 ended on June 30, 2020 compared to revenues of €1.5 billion in same period last year. Group incurred a net loss for the six months of €180 million compared to income of €155 million in H1 FY19.

“The first half of 2020 saw a temporary interruption of our growth trajectory which, in a situation of progressive control of the pandemic, we are confident will gradually resume from the second half of 2020, when our store network will again be fully operational,” Patrizio Bertelli, Prada Group CEO, said in a press release.

“The excellent response of local consumers after the re-openings, confirms the desirability of our products and the strong relationship with our customers, which has been further strengthened by our continued focus on digital technology,” Bertelli said.

Gross margin during H1 FY20 were €660 million (H1 FY19: €1.12 billion). Operating expenses reported a loss of €743 million (€975 million). Group’s EBITDA for the period fell to €155 million (€491 million).

H1 FY20 retail sales were down 32 per cent to €835 million (€1.23 billion). While, wholesale plunged 71 per cent to €91 million (€314 million) during H1 FY20.

In Europe, group’s revenues fell 41 per cent to €228 million. The region saw strong double-digit growth in January and February interrupted by lockdowns. However, group reported a good response to store re-openings from local consumers but still impacted by the lack of tourists.

For Asia Pacific, revenues were down to €370 million. Strong double-digit sales growth since April in Mainland China, while South Korea and Taiwan ROC were registered.

In Americas revenues were €96 million with double-digit growth in January and February but interrupted by lockdown in the later months. Revenues in Japan slipped 39 per cent to €113 million where the group is seeing a recovery driven by local consumption. Whereas, in Middle East revenues dropped 44 per cent to €28 million showing mixed trends with Dubai still suffering from the lack of tourism but other markets in the region sustained by better local consumption.

Fibre2Fashion News Desk (JL)

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