Prada’s 2020 results bolstered by online sales

Italy
Published:  19 March, 2021
Credit: Prada

Revenues at the Italian luxury group reached €2,4 million in the 2020 financial year, down 24% from 2019. Net retail sales for 2020 dropped by 18% compared to 2019 but benefited from a 217% increase in online sales.

Compared to 2019, Prada’s entire product range decreased across its retail channels, with clothing down 11.6%, leather goods 18.6% and footwear 22.7%. However, all categories showed some recovery in the second part of 2020, and sales of leather goods and footwear in particular were boosted by both the launch of new products and through reinterpreted items.

The sales increase in the second half of 2020, practically everywhere geographically, resulted in a full retail recovery in October and December compared to the same months of 2019, despite a new wave of lockdowns, mainly in Europe.

Patrizio Bertelli, Chief Executive Officer of the Prada Group, commented: “We quickly responded to market changes, strengthening the relationship with local customers whose consumption in the second half of the year almost fully offset the absence of tourists. We successfully reached a good level of profitability and generated significant cash flow, improving our financial position. These results give us confidence to face the upcoming rebound as soon as the most critical phase of the pandemic will end.”