The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The Italian fashion house said in a statement Thursday that it remains confident on medium-term targets despite macroeconomic uncertainty, citing the global health situation, the rate of recovery in Chinese consumer spending, and global geopolitical developments as risk factors.
First-half revenue rose 22 percent to €1.9 billion ($1.93 billion), as retail sales in Europe and the Americas grew 89 percent and 41 percent respectively. Net income totalled €188 million for the period, compared with €97 million in the first half of 2021.
“We have more than compensated for the impact of various lockdowns in mainland China and for sanctions on Russia,” chief executive officer Patrizio Bertelli said in the statement, citing the group’s global presence and geographical distribution of sales.
Prada’s first-half report continues a strong run for luxury players this week. Shares in Moncler SpA and Gucci owner Kering advanced on Thursday after first-half results showed that demand for luxury items is holding up well despite a resurgence of Covid-19 in China, alleviating investor concerns over a sector that’s been hard hit this year.
By Flavia Rotondi
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Patrizio Bertelli on Prada’s Next Chapter
Prada Group reported 2021 revenues that grew 41 percent year-on-year to E3.36 billion ($3.83 billion), closing the year up 8 percent compared to 2019′s pre-pandemic levels.
A sharp drop in the label’s Asia-Pacific sales is the latest sign that Chinese luxury demand is cooling.
This week, Kering flagged sales were down 20 percent at its flagship brand, knocking confidence in the group’s turnaround strategy. ‘A more drastic solution is required,’ one analyst wrote.
A new creative configuration will be announced soon, the Roman couture house said.
The late designer had it all and lost it all, but his design genius made him a fashion legend, writes Tim Blanks.