Luxury fashion label Prada is pursuing annual growth of 23.5 per cent over the next five years, according to statements given to its banks.

The company forecasts sales of more than £1 billion by 2010, through a focus on its lucrative Prada and Miu Miu labels, more effective use of showcase stores, and upping the efficiency of its supply chain.

The company, which will also focus on strong brands Azzedine Alaia and Car Shoe, is targeting a sales increase of 3.2 per cent annually.

Prada has already sectioned off unprofitable units Jil Sander, Helmut Lang and Church's - the British footwear business in which it has a minority holding - with the creation of a new company, Prada SpA, which excludes underperforming businesses.

The company said its shareholders were looking at a range of offers for the Jil Sander and Helmut Lang brands, but that it was not pressured to sell either one.
While Jil Sander is due to be relaunched with new creative leadership, Helmut Lang's cost base has been frozen will the company considers future options for the unit.

Prada has forecast a 6.9 per cent rise in this year's sales to €1.29bn, and profits of €51.7 million compared with last year's €61.96m loss.

The positive predictions come after Prada SpA netted a 23.3 per cent earnings hike for the six months ended in July, plus a sales rise of 5.6 per cent.