Asia, Europe power Prada's sales, offset Americas slowdown
Reuters
Published Jul 27, 2023 07:34AM ET
Updated Jul 27, 2023 12:02PM ET
By Elisa Anzolin
MILAN (Reuters) - Italian fashion group Prada (OTC:PRDSY) posted 20% growth in first half sales on Thursday as a strong performance in Asia and Europe helped to offset a slowdown in its Americas region.
The group reported double figure growth from all product categories, with ready-to-wear the strongest part, ahead of footwear and leather goods. Strong momentum at its smaller Miu Miu also helped to support sales growth.
Revenues at the luxury group, listed in Hong Kong, totalled 2.23 billion euros ($2.49 billion). Analysts expected 2.28 billion euros, according to a consensus gathered by Reuters.
Adjusted earnings before interest and taxes (EBIT) jumped to 491 million euros from 305 million euros in the first six month of last year and compared to analysts' estimate of around 460 million euros. The EBIT margin rose to 22%.
"For the current year, we retain our ambition to deliver solid, sustainable and above-market growth, considering a more challenging basis of comparison in the third quarter and a fourth quarter 2022 that was again impacted by new Covid restrictions in Asia", Chief Executive Officer Andrea Guerra said in a statement.
Industry heavyweight LVMH this week reported only an in-line increase in sales, seen as a sign that the overall sector could be facing more moderate growth. LVMH suffered a small quarterly sales dip in the United States, where inflation and economic turbulence have dented demand for high-end goods.
CLOSER TO HOME?
In the conference call with analysts, Prada's Guerra said the group had no update on a possible dual listing in Milan.
Prada's Chief Financial Officer (CFO) Andrea Bonini added that from a technical feasibility standpoint the group was ready to list in its home country
The listing "is in our agenda but we said from day one that it is not a priority for us at the moment" he said.
The managers said that the priority for the second half of the year would be accelerating investments behind the brands and on the stores.
"We are well equipped for another successful semester", Guerra said. (1 = 0.8972 euros)
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Written By: Reuters
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