• 9-month profit down 26.4% 
  • Revenues climb 1.2% to EUR2.58bn 

Italian fashion house Prada has said it is reviewing its organisation to streamline processes after reporting a 26.4% profit slide for the first nine months of the year.

Group net income amounted to EUR235.1m (US$257.4m) for period to 31 October, compared to EUR319.3m in the same period of the prior year.

Net revenues edged up 1.2% to EUR2.58bn from EUR2.55bn last year. 

Retail sales were up 3.8% to EUR2.25bn, while wholesale sales fell 15.9% to EUR295.5m. By region, both Japan and the Middle East saw sales grow by 10%, Europe and the Americas each rose 9%, while Asia Pacific declined 5%, and within that, Greater China fell 9%. 

Church's sales increased 18%, Miu Miu was up 12% and Prada rose 2%. By product, footwear revenues grew 24%, ready to wear increased 6%, but leather goods dropped 1%. 

Gross margin improved to 73.1% from 72% a year ago. 

With the macroeconomic environment worsening, Prada CEO Patrizio Bertelli said the company is further stepping up its commercial and product-related initiatives in the luxury goods segment to strengthen relations with its "increasingly sophisticated and demanding" customer base. 

"At the same time, we have implemented further cost containment measures following a review of all business processes," he explained. 

Bertelli added that Prada is reviewing the group's organisation to streamline processes and further strengthen it with new key people. 

"In the medium-term, we remain optimistic about the outlook for the segment and confident that the undoubted stylistic leadership of our brands and our positioning – with global coverage already secured by our extensive retail network – will be key factors in facing up successfully to future challenges."