REPORT_ The Prada Group consolidated net revenues amounted to 777.7 million euros (1,058.3 million dollars), down by 0.6 percent or over 3.8 percent at constant exchange rates in the first quarter. The strategy of rationalization adopted in the wholesale channel will be completed in 2014 and has led to a 24.7 percent fall in wholesale sales or below 23.9 percent at constant exchange rates.
Commenting on the results, Patrizio Bertelli, Chief Executive Officer of Prada, said, “When presenting our results for 2013, we stated that our objective for 2014 would be to consolidate the position of the Prada Group at the top of the luxury goods segment with industrial, marketing and retail investments, primarily aimed at reinforcing business know-how, the quality of our products and relations with our customers. The trend of solid growth maintained in the retail channel confirms that we have made the right strategic decisions and encourages us to continue along our current path.”
In contrast, the retail channel has continued to expand and, despite unfavorable foreign exchange trends, revenues from the 551 directly operated stores was up by 2.8 percent on the first quarter of 2013 or over 7.7 percent at constant exchange rates. The Asia Pacific area recorded a 3.9 percent increase at constant exchange rates or below 1.2 percent at current exchange rates. The performance of this area was affected by a slowdown in Korea, Hong Kong and Singapore while China, Macau and other Asian markets continue to show healthy rates of growth.
The Americas retail channel achieved 16.5 percent growth at constant exchange rates or over 9.5 percent at current exchange rates. Sales in Europe remained broadly in line with 1Q13 with 1.1 percent increase at constant exchange rates or 0.2 percent at current exchange rates. Japan continues to perform well and constant exchange rate growth stood at over 30.5 percent.
The Prada brand achieved 7.8 percent sales growth at constant exchange rates and over 2.8 percent at current exchange rates with excellent performances in Japan and in the Americas. The retail performance of the Miu Miu brand was also positive, with over 7.3 percent growth at constant exchange rates or over 1.9 percent at current exchange rates, with growth achieved in all geographical areas (except Italy) and double digit growth in all important markets like Asia Pacific, the Americas, Japan and the Middle East. Church’s also achieved double digit sales growth of over 13 percent at constant exchange rates and over 13.5 percent at current exchange rates while Car Shoe sales decreased.
Apparel and footwear achieved 19.4 percent and 20.9 percent growth, respectively, at constant exchange rates and over 14.1 percent and 16.2 percent at current exchange rates while sales of leather goods, which in the last two years have grown by 64 percent, broadly in line with 1Q13.