Sales of leathergoods plummet at Prada
30/08/2016
Revenue fell 14.8% year-on-year to €1.6bn during the six months to the end of July. Net income for the period was down 25% to €141.9m. Sales through Prada’s retail business dropped 17.8%.
Sales of leathergoods suffered the most, dropping 22% compared to the same period of 2015. This compared to respective decreases of 9% and 10% in sales of footwear and ready to wear.
Prada CEO Patrizio Bertelli predicted that 2016 would be a “turning point” for the company, as the launch of several new initiatives to revive retail sales begin to take effect.
Among these initiatives is the launch of new collections across all its brands, including Miu Miu and Church’s shoes. Prada has also been relocating or expanding some of its most important stores and closing those in “secondary cities” or where it was unable to negotiate favourable leases. It also plans to expand its e-commerce operations, with a focus on China, Hong Kong and Singapore.
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