Commenting on the development, Patrizio Bertelli, Chief Executive Officer of Prada Spa, said, “In the coming months, our priority commitment shall be towards monitoring market trends and performance without, however, interrupting the implementation of our plans for growth. At the same time, we will implement a rigorous cost control program with the aim of protecting margins. Upon approval of the results for the first half of 2014, the Board of Directors shall – in light of the results achieved in the first half of the year and with a clearer view of the outlook for the months ahead – update its guidance for the year as a whole.”
Wholesale channel sales recovered in the second quarter and recorded an overall increase of 1 percent, or over 2 percent at constant exchange rates. The retail channel, representing more than 83 percent of total sales recording revenues of 1,442 million euros (1,926 million dollars) with a 1 percent increase compared to the first half of 2013; at constant exchange rates, the 566 directly operated stores achieved revenue growth of 5 percent.
The Asia Pacific markets recorded overall revenue growth of 2 percent at constant exchange rates and a 2 percent decrease at current exchange rates with performance remaining weak in Korea, Hong Kong and Singapore, while China accelerated in second quarter, achieving 12 percent growth at constant exchange rates, and the other Asian markets managed steady rates of growth. The positive trend in the Americas continued with the retail channel recording 14 percent growth at constant exchange rates or over 8 percent at current exchange rates.
Revenues slightly decreased compared to the first half of 2013 in Europe, below 1 percent both at constant and current exchange rates. Japan again achieved another positive growth despite the expected slowdown in purchases after the VAT increase at the beginning of April representing over 19 percent rise at constant exchange rates and over10 percent at current exchange rates. The revenue trend in the Middle East was excellent with strong growth in the first half of the year of 21percent at constant exchange rates and over16 percent at current exchange rates.
Prada brand revenues increased by 5 percent at constant exchange rates while, at current exchange rates, there was growth of 1 percent. The development for the Miu Miu brand continues with growth of over 7 percent at constant exchange rates and over 3 percent at current exchange rates. Church’s witnessed over12 percent rise at constant exchange rates and over14 percent at current exchange rates, and Car Shoe achieved growth of over 3 percent at constant exchange rates and over 2 percent at current exchange rates.
Clothing and footwear performed extremely well with growth of 18 percent and 23 percent, respectively. Meanwhile, revenues from sales of leather goods decreased by 1percent at constant exchange rates and below 5 percent at current exchange rates. The Men’s segment enjoyed double digit growth, in line with Group strategy which aims to develop sales of men’s collections in all geographical areas.
Full results for the first half of financial year 2014 will be announced upon approval by the Board of Directors at a meeting provisionally scheduled for September 19, 2014.