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Prada Reports 2.7% Rise in Full-Year Sales, Flags Future Hit From Coronavirus

Earnings before interest and taxes declined 5.3 percent to €306.8 million ($336.31 million) last year, as the luxury group took measures to reduce markdowns and scale back its wholesale distribution network.
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By
  • Reuters

MILAN, Italy — Sales at Italian fashion group Prada rose by 2.7 percent at constant exchange rates in 2019, but warned that it expected a negative impact on 2020 results due to the coronavirus outbreak.

The luxury goods maker said it was implementing a comprehensive contingency plan to mitigate the effects without giving further details.

Earnings before interest and taxes (EBIT) declined 5.3 percent to €306.8 million ($336.31 million) last year, hit by ongoing measures to reduce markdowns and scale down the wholesale distribution network.

Analysts had expected revenue of €3.21 billion and an operating profit of €306 million, according to Smart Estimates provided by Refinitiv.

The results came out after the market close in Hong Kong, where Prada is listed.

The company had previously cancelled a scheduled conference call with analysts that should have taken place after the press release due to the spread of the coronavirus outbreak and a nationwide lockdown imposed by the Italian government until early April.

By Claudia Cristoferi and Niyati Shetty; editor: Louise Heavens.

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