Italian fashion house Prada, which is considering an IPO some time in 2008 to fund growth, said net profit rose 63% in 2006 to EUR76m ($103.9m).

In the full-year, sales rose 8.2% to EUR1.425bn.

The company said in a statement that cost control and "a more favourable product mix" were behind the growth, with leather goods and shoes representing 65% of sales, garments 34% and licenses 1%.

Net debt dropped 14% to EUR496m at the end of December, from EUR577m a year earlier.