REPORT_The Prada SpA Board of directors approved the interim report for the nine months ended October 31, 2013, with the company achieving solid growth. Consolidated net revenues totaled 2,576.1 million euros, a 10.1 percent increase on the 2,339.3 million euros reported for the the first nine months of 2012.
EBITDA amounted to 821 million euros and increased by 12.8 percent during the same period in 2012, representing 31.9 percent of consolidated net revenues. EBIT amounted to 677.8 million euros, 26.3 percent of consolidated net revenues – an increase of 10.7 percent on the first nine months of 2012. Net income rose by 7.9 percent to 440.9 million euros, 17.1 percent of consolidated net revenues.
Sales by directly operate stores totaled 2,182 million euros, a 13.8 percent increase on the first nine months of 2012. Wholesale channel sales decreased by 6.5 percent, as a result of the selective strategy the Group has been following for some years in relation to independent retailers.
Sustained growth was seen in all areas. In Asia Pacific, growth slowed down slightly in the third quarter but continued to stay steady at 14.4 percent. In the Americas, another strong performance was recorded this quarter with growth of 13.5 percent, due to the accelerated growth of its retail channel.
The European market held up well, a 5.2 percent growth was reported. However, sales through the retail network recorded double digit growth, thanks to the large influx of tourists, while the wholesale channel recorded a decline in revenues.
Revenues in Japan grew by 18.6 percent at constant exchange rates, thought the weakening of the Yen meant the Euro equivalent revenues actually dropped by 2.9 percent. The Middle East generated revenues of 65 million. The Milan-based Prada brand achieved double digit growth of 12.7 percent, while Miu Miu saw a revenue growth rate of 2 percent, 7 percent at constant rates and Church's a 2.2 percent increase, 6 percent at constant rates.
Patrizio Bertelli, Chief Executive Officer of Prada Spa commented: “In a quarter again affected by unfavorable foreign exchange trends and a general slowdown in consumption, the Prada Group continued to grow also through retail network expansion, while maintaining the high levels of profitability already achieved. We are satisfied with these results which encourage us to continue along a path of long-term growth, based on a balanced presence in all markets and on the undisputed stylistic leadership of our brands.”