ITALY: Prada share price slips amid slower profit growth
- FY profit up 0.3% to EUR627.8m
- Revenues up 8.8% to EUR3.59bn
- Hit by foreign exchange losses and higher tax burden
Italian fashion house Prada saw its share price fall slightly today (2 April) after booking a less than 1% increase in annual net profit.
Net income reached EUR627.8m (US$864.5m) in the year to 31 January, up 0.3% from growth of 45% to EUR625.7m in the same period of last year. The company said it was hit somewhat by foreign exchange losses and a greater tax burden.
Total revenues grew 8.8% to EUR3.59bn over EUR3.30bn in the prior year. Retail sales generated 84.5% of the group revenues, while wholesale revenues were down 6.9% to EUR551.6m during the year.
In Europe, revenue rose 4.8%, while the Americas market grew 10.9%, Asia Pacific 11.4% and Japan 1%.
By brand, Prada saw sales increase 11.1%, and Miu Miu posted a 1.2% rise. The Church's label also recorded growth, while Car Shoe posted a decline.
Nonetheless, CEO Patrizio Bertelli said: "We are very satisfied with the work done over the last few years and the results achieved in terms of growth and profitability which encourage us to continue along our path of development."
"Even though the macroeconomic situation remains difficult and the continuing strength of the Euro does not help with exports, we are confident that the luxury goods sector will continue to grow and that, faced with rapidly changing consumer tastes and preferences, we will draw on our creativity and innovative capacity which enables us to interpret and, often, anticipate market trends."
The company's share price fell 2% to EUR61.75 at 8:50 GMT this morning.
Italian fashion house Prada has seen sales growth slow during the first half, due to unfavourable exchange rates and weaker demand in Asia and Europe....
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