Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Prada Says China Sales To Date Well Above 2019 Levels

The luxury label's recovery in China has accelerated since March, with sales growth of more than 60 percent in following months.
Prada store in the Central district of Hong Kong | Source: Getty Images
By
  • Reuters

MILAN, Italy — Italian luxury goods group Prada's sales in China have recovered strongly since shops reopened there and to date have risen well above last year's levels, Chief Executive Patrizio Bertelli told Reuters on Friday.

Bertelli said the appetite of Chinese customers for luxury goods remained very strong despite the fallout from the coronavirus pandemic, which has tipped the global economy into recession and frozen international travel.

The virus first emerged in China late last year and then spread to the rest of the world, forcing high-end retailers to temporarily close stores and idle manufacturing sites.

The industry's overall sales are expected to decline by up to 35 percent in 2020, but luxury groups are betting on a strong rebound in mainland China to limit the damage.

ADVERTISEMENT

"To date, the Prada Group's sales in China have already largely exceeded the levels of 2019, showing double-digit growth since the beginning of the year," Bertelli said in an emailed statement.

He said the recovery in China had accelerated since the end of March, with sales growth of up to more than 60 percent in following months.

"We believe that the same trend can be maintained in the coming months," Bertelli said.

He added that Prada's sales for China Valentine's Day, which this year fell on August 25, hit an all-time record.

Hong Kong-listed Prada's first-half global sales plunged by 40 percent at constant exchange rates, though the group said when it presented its results that retail sales in mainland China had increased by 60 percent in June and 66 percent in July.

The Asia Pacific region accounted for 44 percent of Prada's sales in the six months to June.

Chinese shoppers were responsible for 37 percent of global luxury goods purchases in 2019, according to consultancy Bain, with the bulk of the shopping done when travelling abroad.

By Silvia Aloisi and Claudia Cristoferi; editor: Elaine Hardcastle.

In This Article
Topics
Organisations
Location

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Luxury
How rapid change is reshaping the tradition-soaked luxury sector in Europe and beyond.

Kering Profits to Plummet 40-45% in First Half

The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024