Prada Group 2013 revenues increase 8.8 percent

Wednesday, 02 April 2014
REPORT_ The Prada Board of Directors approved the financial statements of Prada spa and the consolidated financial statements for the year ended January 31, 2014. In 2013, Group’s consolidated net revenues totaled 3,587.3 million euros (4,947.9 million dollars), an 8.8 percent increase or over 13.3 percent at constant exchange rates compared to last year.

The Milan-based company successfully continued its expansion in the global luxury goods market. Group’s EBITDA grew by 8.6 percebt compared to 2012 to reach 1,143.2 million euros (1,576.8 million dollars), remaining stable at 31.9 percent of consolidated net revenues. EBIT also grew by 5.6 percent.

Net income was somewhat hit by foreign exchange losses and a greater tax burden but still amounted to 627.8 million euros (865.9 million dollars), broadly in line with prior year. In 2013, the retail channel generated 84.5 percent of the Group revenues. DOS (Directly Operated Stores) sales saw a 12.5 percent increase on prior year or over17.8 percent at constant exchange rates and Like-for-Like growth which totaled 7 percent.

During the year, the Group expanded the retail network from 461 DOS at January 31, 2013 to 540 DOS at January 31, 2014, including 330 Prada, 150 Miu Miu, 52 Church’s and 8 Car Shoe.

Commenting on the results, Patrizio Bertelli, Chief Executive Officer of Prada spa, said, “Even though the macroeconomic situation remains difficult and the continuing strength of the Euro does not help with exports, we are confident that the luxury goods sector will continue to grow and that, faced with rapidly changing consumer tastes and preferences, we will draw on our creativity and innovative capacity which enables us to interpret and, often, anticipate market trends”.

The European market revenues grew 4.8 percent or over 6 percent at constant exchange rates, all of it attributable to the retail channel growth of over10.9 percent at constant exchange rates while the wholesale channel recorded a fall in revenues compared to prior year; the Americas market recorded 10.9 percent revenue growth for the year as a whole and over15.3 percent at constant exchange rates). The retail channel did extremely well with 36.3 percent growth at constant exchange rates; Asia Pacific witnessed 11.4 percent growth and over 14.4 percent at constant exchange rates). The Greater China area made a key contribution to the growth of the area as a whole, reaching sales growth of over 14.7 percent at constant exchange rates.

The growth continued in Japan where sales increased by 23.6 percent at constant exchange rates though the continuing weakness of the Yen meant that Euro equivalent revenues were broadly in line with 2012. The contribution of the Middle East area to group sales increased 91.1 million euros (125.7 million dollars).

Prada achieved 11.1 percent revenue growth or over 15.6 percent at constant exchange rates, especially in the retail channel where the brand recorded one of the highest rates of growth in the sector. Miu Miu also achieved revenue growth of over 1.2 percent or over 6.5 percent at constant exchange rates. he Church’s brand also recorded revenue growth in 2013 of over 3.2 percent at constant exchange rates while Car Shoe revenues decreased because of the downturn in the wholesale channel.

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