- Prachi Singh |
The consolidated net revenues of the Prada Group for the six months ended July 31, 2015 amounted to 1,823 million euros (1,999 million dollars), with a 4 percent increase compared to the corresponding period in 2014, because of the positive performance of retail channel which more than compensated for a decrease in wholesale channel sales.
The sales of the wholesale channel for the period totalled 248 million euros (271 million dollars) and were down by 14 percent at current exchange rates, in keeping with the strategy of rationalization of the network of wholesale partners. However, the sales of the Group’s retail network have grown by 8 percent at current exchange rates to stand at 1,552 million euros (1,702 million dollars), benefiting from the positive effect of exchange rates accompanied by a general improvement in sales performance.
Commenting on the performance, Patrizio Bertelli, Chief Executive Officer of Prada Spa, said, “Sales in the first half of 2015 reflect an economic and exchange rate landscape that remains rather volatile with the continuing weakness of important markets like Hong Kong and Macau and the uncertainty that is looming on other Asian markets. Our distribution structure, which has achieved an appropriate global presence, together with our awareness of the specific needs of the various markets, has enabled us to compensate for the drop in sales in Asia Pacific thanks to growth on markets which are currently more dynamic like Europe and Japan.”
The European market continued to grow with revenues up at both current exchange rates 12 percent and constant exchange rates 11 percent, owing to a steady flow of tourists together with a recovery in consumption by domestic customers. The Japanese market has also performed extremely well with growth at both current exchange rates 12 percent and constant exchange rates 5 percent; double digit rates of growth were achieved throughout the second quarter.
Meanwhile, the Asia Pacific market showed a negative trend, as in the first quarter of the year, offset by a positive rate exchange effect. Hong Kong and Macau remain the main drivers affecting the performance in this geographical area. At current exchange rates, sales increased in the Americas and in the Middle East reaching 15 percent growth in both markets; in the Middle East, performance improved significantly in real terms in the second quarter.
The Prada brand has recorded 5 percent growth at current exchange rates which is entirely attributable to the exchange rate effect, mainly because of the adverse economic situation in the Asian market. Meanwhile, Miu Miu continues to grow with revenues up at both current exchange rates 19 percent and constant exchange rates 6 percent, showing an acceleration in the second quarter of the year. Church’s has also achieved sales growth, 19 percent, with the volumes trend also remaining largely positive. Car Shoe has performed broadly in line with prior year.
Full results for the first half of financial year 2015 will be announced upon approval by the Board of Directors at a meeting scheduled for September 30, 2015.