Italy : Prada Group sales rise 9% in FY'14

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Prada Group sales rise 9% in FY'14

13
Feb '14

The Prada Group recorded sales of Euro 3,586 million in the financial year ended January 31, 2014, a 9% increase on financial year 2012. At constant exchange rates, sales grew by 13%.

Highlights:

-Total sales + 13% at constant exchange rates

-Retail sales + 18% at constant exchange rates

-Same Stores Sales Growth + 7 %

Sales channel

Sales by Directly Operated Stores totaled Euro 2,996 million with a 12% increase on the previous financial year (+18% at constant exchange rates). The growth was thanks to newly opened stores and to Same Store Sales Growth of 7%, which remained constant in all four quarters.

Meanwhile, wholesale channel sales decreased by 7% (- 6% at constant exchange rates), entirely as a result of the strategy adopted by the Group in recent years to streamline the wholesale network and, in Europe in particular, to be selective of independent retailers based on quality and reliability.

Geographical area

Strong growth on all markets:

-Asia Pacific achieved important progress in 2013 with growth of 11% (+14% at constant exchange rates). Greater China made a fundamental contribution to growth in this area with sales for the year of Euro 826 million, +15% at constant exchange rates.

- The American market again performed extremely well in the fourth quarter and achieved 11% growth for the year as a whole (+15% at constant exchange rates), PRADA spa entirely thanks to the retail channel which grew by 36% at constant exchange rates.

- The European market held up well, bearing in mind the difficult economic environment and the recent strengthening of the Euro, with sales growth of 5% (+6% at constant exchange rates); as in the United States, the growth was driven by the retail channel (+11% at constant exchange rates), while wholesale channel sales were down on the previous financial year.

- Japan continues its expansionary phase and revenues grew by 24% at constant exchange rates, though the ongoing weakening of the Yen meant that Euro equivalent revenues were broadly in line with 2012 (+1%).

- The contribution made by the Middle East to Group sales grew strongly: at January 31, 2014, there were some 16 DOS in this area and they generated sales of Euro 90 million.

Brands

The Prada brand achieved excellent results with sales growth of +11%, (+16% at constant exchange rates), especially in the retail channel where it recorded one of the highest growth rates in the sector (+20% at constant exchange rates), confirming the strength of the brand.

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