China leads growth for Prada Asia
Greater China was the outstanding market for Prada Asia for its half-year, while sales fell in Japan.
Overall, the group had lower sales with conflicting trends, some markets recovering and others contracting.
Growth for Asia Pacific edged up 0.4 per cent. While sales grew for clothing and leather good, footwear sales fell.
Net sales in Greater China reached €301.9 million (US$362.5 million), up by 4.5 per cent, whereas other countries in the region had declines. Sales in Japan fell by 14.2 per cent, hit by a decline in both local demand and in tourist spending.
Global net revenues for the period were €1.4 billion, down by 5.5 per cent. EBIT for the half-year was €166.8 million, or 11.4 per cent of net revenues, down from €213.7 million (13.8 per cent) for the same period last year.
Miu Miu shines
Clothing sales rose by 4.3 per cent overall, with the Miu Miu brand recording double-digit sales growth. Leather goods sales fell by 7.4 per cent, with a lesser decline for the Prada brand. Footwear sales were down by 9.7 per cent.
Net sales of the Prada brand fell by 4.6 per cent, with the Asia Pacific region reporting sales in line with those of the same period of last year, while the other regions had lower sales.
Miu Miu net sales fell by 9.9 per cent, affected by the closure of eight stores during the period.
Net sales of the Church’s brand fell by 15 per cent, mainly as a result of the distribution channel being restructured.
For the group’s other brands, the sales of Marchesi 1824 patisserie goods grew thanks to expansion, while the Car Shoe brand had a decline.
Prada’s gross margin for the six months was €1 billion, or 74.1 per cent of net sales, up by 190 points. Half-year EBITDA was €279.6 million, corresponding to 19.1 per cent of net revenues, a dilution of 210 points.
Thirteen stores were closed down during the six months (four Prada, eight Miu Miu and one Church’s), plus six stores were opened (two Prada, two Miu Miu and two Church’s).
Sales in the wholesale channel grew by 5.1 per cent.
Prada says its plan to bring Miu Miu stores into line with the brand’s new look progressed, and special projects were completed for Prada stores such as new layouts and extension of the “resort” concept to seaside stores.
The group also introduced an e-commerce plan for all its brands, including an omnichannel growth strategy focusing on gradual expansion of the online sales channel in terms of merchandising and territorial coverage, plus new versions of the websites.
Digital initiatives also involved advertising and communications, with the creation of special content and the acquisition of online space and media tools intended to create synergy among the three distribution channels.