Prada saw strong growth in 2011
Italian leathergoods brand Prada has reported 2011 results that beat analysts’ estimates. Net income rose 72% to EUR431.9 million in the year ended 31 January, 2012, the company said in a statement. The average of 13 analyst estimates compiled by Bloomberg was for profit of EUR414.3 million.
Aaron Fischer, head of Asia consumer and gaming research at CLSA in Hong Kong, talks about the outlook for luxury goods retailers.
The results “confirm the group’s ability to achieve strong growth while continuing to become more profitable,” the company said. Revenue for 2011 climbed 25% to EUR2.6 billion.
In 2012, Prada will focus on upgrading and opening more stores, including in mature markets, where there is an increasingly significant flow of foreign travellers, it said.
Revenue climbed in all geographies last year, led by the Asia-Pacific region, which increased its share of total sales to 34.6% from 30.4%, and by the Prada and Miu Miu brands, the company said.
Retail sales climbed 38% as Prada opened 75 stores, taking the number of boutiques it operates directly to 388. On a like-for-like basis, retail growth was 23%. Wholesale revenue declined 5.2%, which the company attributed to its policy of being more selective about third- party accounts in Europe and to bad weather and strikes in Italy, which affected deliveries.
