Online sales drive Italian luxury firm Prada's growth in H1 FY21

02 Aug '21

2 min read

Pic: Prada

Despite continued restrictions, the Italian leader in luxury goods industry Prada Group has reported progress in retail revenues growing 66 per cent to €1,501 million in the first half (H1) of FY21 against same period of prior fiscal. E-commerce sales maintained its triple digit growth for the fifth quarter in a row, according to the company.

“The commitment to our brands and stronger ties with our customers have delivered robust growth in sales across markets and product categories. We improved gross margin as well as the group’s profitability, despite the uncertain environment,” Patrizio Bertelli, chief executive officer of the Prada Group, said in a press release.

Gross margin for H1 FY21 was €1,115 million (€660 million), and operating expenses reported a loss of €949 million (loss: €856 million). Net income improved to €97 million. However, EBITDA rose to €478 million (€155 million).

Sales in Europe during the first six months were €263 million, impacted by the high levels of store closures, but once stores re-opened, they partially recovered, the company said. While Asia Pacific sales escalated to €599 million with growth in China (77 per cent), Taiwan (74 per cent) and Korea (108 per cent).

Sales in Americas grew 163 per cent to €232 million, driven primarily by local consumers, with strong performance across all countries. Moreover, sales in Japan were €129 million due to restrictions imposed by the government ahead of the Olympic games.

“The sales momentum will stay strong in the second half of the year. Our brands have plenty of potential and we will unlock it over the medium term. I look forward to updating the market on this and other topics at a Capital Markets Day that will take place in the autumn,” Bertelli concluded.

Fibre2Fashion News Desk (JL)

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