Confident Prada untroubled by falling revenue
09/06/2014
Sales of €777.7 million were down 0.6% (+3.8% at constant exchange rates) on the €782.3 million reported for the three month period last year, which the group said was “entirely attributable to the wholesale channel” and was “in line with expectations”.
The strategy of rationalisation in the wholesale channel – to boost exclusivity by reducing the number of sellers – will be completed this year and has led to a 24.7% fall in wholesale sales.
Footwear maker Church’s achieved double digit sales growth of 13% at constant exchange rates while Car Shoe sales decreased.
Groupwide, footwear sales grew 20% while leathergoods, which in the last two years have grown by 64% (from €1.4 million in 2011 to €2.3 million in 2013), are broadly in line with the same period last year.
Prada CEO Patrizio Bertelli said: “We do not believe that the current difficult macroeconomic environment, made all the more complex by unfavorable foreign exchange trends, will impact the plans for corporate growth presented to the market as these plans are geared towards the group’s expansion in the medium/long-term. The trend of solid growth maintained in the retail channel confirms that we have made the right strategic decisions and encourages us to continue along our current path."
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