Strong start for Prada in 2004
Hopes for a permanent recovery in the luxury retail market have been given a lift with the release of Prada’s full year 2003 revenue results.
In a statement accompanying the release, the Italian fashion house said that in the first three months of 2004, its US sales were up 24% compared with the year before, while in China they were up by 66%. Predictably, the European picture was more subdued, with a 7% increase being seen, though even this was ahead of many observers’ expecations.
In the 12 months ended December 31 2003, pre-tax profits stood at €205 million, substantially in line with the year before, on sales of €1.36 billion. On the other hand, gross margins were up to 15.1% compared with 13.4% the year previous, indicating that the company’s debt cutting strategy appeared to be working. The Group’s historic brands of Prada and Miu Miu continued to account for the bulk of revenues (around 84%).
In its outlook, Prada said it would be opening a new flagship store in Hong Kong at Alexandra House in April and its third ‘Epicentre Concept Store' in Los Angeles/Beverly Hills in July. Its plans also included the opening of ‘a significant number’ of new stores in China, Japan and Korea.
