Prada’s EBIT totalled €307 million for the year ended December 31, 2019, representing 9.5% of revenues (2018: €324 million, 10.3%). Net income amounted to €256 million; 7.9% of revenues. Retail sales were up 4% at current exchange rates, and 2% at constant. Full price sales are said to have reached double digit growth in the second half of 2019, more than offsetting a sharp reduction in markdowns. Wholesale sales declined 3% at current exchange rates.

At current exchange rates, sales in Europe increased 6%, with a strong improvement in the second half of the year, driven by locals and tourists according to Prada. Sales in America increased 11%, largely supported by local customers, but sales in the APAC were down 2%, negatively impacted by protests in Hong Kong; excluding the latter, retail sales were up 5%. Sales in Japan increased 9% but were down 1% in the Middle East. Footwear and leather goods also reported to have showed improving growth; sales in both categories grew 2% each at current exchange rates.

“The start of 2020 has been very buoyant for the Prada Group; the Coronavirus outbreak has interrupted our growth trajectory. This is a huge and unprecedented event that will draw deeply on our sense of responsibility”, said Patrizio Bertelli, CEO, Prada Group. “Although it is difficult to forecast the evolution of the epidemic, we are expecting a negative impact on this year’s results and we are implementing a comprehensive contingency plan to mitigate it, relying on our flexible supply chain and lean organisation”, he added.