Prada profits driven by love for leather

Prada profits driven by love for leather
A Prada shop in Milan. Photo: Pavel Gromov/Wikicommons
Italian luxury fashion brand Prada posted a 13.5-percent growth in net income for the first quarter on Tuesday, driven by lively sales in leather goods which compensated for a slump in footwear.

"In an international economic environment that remains extremely volatile and uncertain, the Prada Group has recorded another highly positive quarter," Patrizio Bertelli, owner and chairman of the Prada brand, said in a statement.

The company said net profit rose from €127.1 million ($168.7 million) in the first quarter of 2012 to €138.2 million in the first quarter of 2013.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to €240.8 million, a 20.4-percent increase on a 12-month comparison, it said.

"Revenues from sales of leather goods again grew strongly with a 29 percent increase and reached almost 70 percent of consolidated net revenues for the quarter," Prada said.

"Meanwhile, apparel and footwear, more exposed to the wholesale channel, recorded revenue decreases of 5.1 percent and 12.2 percent respectively," it said.

The Asia Pacific market grew by 23.1 percent and the Americas increased 23 percent, while the European market remained broadly unchanged at 1.3 percent growth at constant exchange rates.

"In 2013, we will again concentrate on the international expansion of our retail network but without moving away from tight control over costs and working capital, also in order to safeguard our cash flow generation," Bertelli said. 

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