Strong demand in Europe and Asia, coupled with new store growth, has helped Italian luxury fashion brand Prada to a 29% hike in full-year sales.
The company yesterday (19 February) said revenues surged to EUR3.30bn (US$4.42bn) over the year ended 31 January. At constant exchange rates, sales were up 23%.
Growth was driven by strong demand in Europe and Asia, where sales climbed 36% and 33% respectively. Sales rose 23% in the Americas, 19% in Italy and 14% in Japan.
The overall growth was also boosted by its Prada and Miu Miu brands, which saw sales increase 33% and 16% respectively.
New stores helped retail channel sales jump 36% to EUR2.66bn. The group opened 78 new stores during the year, taking the total number of directly operated stores to 461.
"In a year characterised by a particularly difficult international economic environment, our group has made further important progress along its path of growth, consolidating its position at the head of the luxury goods sector," CEO Patrizio Bertelli said.
"The strength of our brands, our ability to interpret and anticipate market trends and our global retail network continue to form the basis for our long-term growth strategy."
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PRELIMINARY SALES FIGURES FOR FINANCIAL YEAR 2012
A year of strong growth for the Prada Group:
consolidated revenues up by 29% to Euro 3,297 million
Milan, February 19th, 2013
- Prada Group net revenues for financial year 2012, ended January 31 2013, amounted to Euro 3,297 million, a 29% increase on financial year 2011.
At constant exchange rates, the Group enjoyed sales growth of 23%.
- Retail channel sales now represent 82% of total sales and amounted to Euro 2,664 million, a 36% increase on 2011 (+29% at constant exchange rates). New stores contributed towards this growth as did existing stores, with Same Store Sales Growth – at constant exchange rates – standing at 14%.
- Wholesale sales grew by 6% even though the number of indirect points of sale decreased following an increase in the number of newly opened retail stores.
All geographical areas contributed towards the Group’s sales growth:
- Italy +19%
- Rest of Europe +36% (+33% at constant exchange rates)
- Asia Pacific +33% (+23% at constant exchange rates)
- Americas +23% (+15% at constant exchange rates)
- Japan +14% ( +8% at constant exchange rates)
- The growth of the business was driven mainly by the Prada and Miu Miu brands which enjoyed sales increases of 33% and 16%, respectively.
Notwithstanding the decision to significantly reduce sales at mark-down in the last weeks of the financial year, growth in the fourth quarter stood at +14%, at constant exchange rates.
In financial year 2012, in line with its strategy, the Group continued to expand its retail network, opening 78 new stores and taking the total number of DOS (Directly Operated Stores) to 461 at the end of January, including 283 Prada stores, 126 Miu Miu stores, 45 Church’s stores and 7 Car Shoe stores.
Patrizio Bertelli, Chief Executive Officer of Prada Spa, commented “In a year characterized by a particularly difficult international economic environment, our Group has made further important progress along its path of growth, consolidating its position at the head of the luxury goods sector. The strength of our brands, our ability to interpret and anticipate market trends and our global retail network continue to form the basis for our long-term growth strategy”.
The audited consolidated results of the Group for the financial year ended January 31, 2013 are tentatively scheduled to be announced by the Company on April 5.
For further information, please contact:
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The PRADA Group –HKSE Code: 1913 – is one of the world leaders in the luxury goods sector where it operates with the Prada, Miu Miu, Church’s and Car Shoe brands in the design, production and distribution of luxury handbags, leather goods, footwear, apparel and accessories. The Group also operates, under licensing agreements, in the eyewear, fragrances and mobile telephone sectors. Its products are sold in 70 countries worldwide through a network that included 461 directly operated stores (DOS) at January 31, 2012 and a select network of luxury department stores, independent retailers and franchise stores.
Original source: Prada