23 August, 2019 - 25 August, 2019
01 September, 2019 - 03 September, 2019
03 September, 2019 - 05 September, 2019
04 September, 2019 -
16 September, 2019 -
Lower consumer spending in China has impacted the performance of the Hong Kong-listed Italian luxury Group, sending shares down -11% upon the announcement of the 2018 results.
For the year ending December 31, 2018, Prada’s revenues amounted to €3,142 million, up +3% at current exchange rates compared with €3,056 million for the previous year (+6% at constant exchange rates). EBITDA was €551 million in the period, representing 18% of revenues, and net income totalled €205 million, 7% of revenues. The Company’s net financial position ended the year negative, at -€309 million.
Sales in the Asia Pacific region grew +10% in the period, at constant exchange rates, with increases across all the main markets. Sales in Greater China rose +8% in the year (inc Hong Kong, Taiwan), but sales in Mainland China were flat, attributed to lower consumer spending due to the weakness of the RMB and as Chinese consumers remain cautious with the economic slowdown. Sales in the American market, sustained by local customers and tourists according to the Italian luxury label, grew +4% at constant exchange rates, and performance in Europe is reported to have been positive despite a decline in tourism flows, with sales up +3%, supported by domestic consumption. “Progress” was registered in the Middle East with growth of +5%.
Sales in the Leather Goods part of the business increased +6%, “driven by the market's appreciation for the iconic lines as well as for the many new products introduced during the year”, said Prada. Sales in the Footwear category increased +2%, partly attributed to the success of the new sneaker collections, while revenues in Ready-to-Wear grew +10%. The Prada brand closed 2018 with a +7% growth at constant exchange rates and sales of the Miu Miu brand increased +2% in the year.
In the outlook for 2019, Patrizio Bertelli, CEO, Prada, said the Company will focus on digital consumer communication. “It is clear that the digital transformation has radically altered relationships with consumers, making them ever more aware of their purchasing choices”, said. “With this objective in mind, we will continue to invest in all our digital assets to create an increasingly immersive brand experience with a unique and engaging involvement at all touch points. We are also investing to strengthen the industrial infrastructure to ensure timely responses to the different needs of the individual markets, translating our creative vision of the evolution of looks into products readily available at our stores”, added Bertelli.