Prada half year review: store closures hit 70%, e-commerce growing rapidly
Luxury brand Prada has released its first half of 2020 numbers, which show retail sales down 32%, wholesale sales down 71% and total net revenue at €938 million, which is down 40%.
According to the report, an average of 40% of retail locations were closed from February to May, reaching as high as 70% in April. However, the company said, the reopening of stores is helping sales recover. Prada is “seeing significant growth” in Asia and “encouraging signs in other markets” which they said is thanks to local consumption as tourism remains down.
“The significant reduction to wholesale exposure and the markdown phase out have remained in place throughout the pandemic,” said Prada, referring to a strategic shift made in 2019, “and have proved to be the right decisions to confirm the group’s future growth.
E-commerce is performing well, according to the report, having achieved triple-digit sales growth throughout and after the lockdowns.
