Prada profits boosted by Chinese buyers

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Prada profits in Asia have grown by 17.9 percent over a year. Photo: Tom French/Flickr
14:25 CEST+02:00
Italy's lingering economic crisis appears to be having little effect on the country's fashion industry, as Prada on Tuesday announced profits of €308.2 million in the first half of 2013.

Italian luxury fashion brand Prada said that its net profit rose by 7.6 percent in the first half of its fiscal year to €308.2 million and expressed confidence for the future, despite an uncertain international economic outlook.

Consolidated sales rose by 11.7 percent in nominal terms and 14.8 percent at constant exchange rates to €1.73 billion in the February to July period.

"We are satisfied with the results achieved in the first half of 2013: revenues have increased in all geographical areas where the Group operates and we have further improved our operating margins," chief executive Patrizio Bertelli said in a statement.

Operating profit measured by earnings before interest, tax, depreciation and amortisation rose by 17.4 percent from the same period in 2012 to €555.1 million.

Asia, in particular greater China, saw above-average revenue growth of 17.9 percent.

Revenue jumped by 13.4 percent in the Americas and also grew by 5.6 percent in Europe.

The weakness of the yen meant that revenues in euros in Japan actually fell, although they grew at 16.4 percent at constant exchange rates.

"Our business model, based on a balanced global geographical presence and on the strength of our brands, has enabled us effectively to face the challenges thrown down by an international economic environment which remains uncertain and extremely volatile," said Bertelli.

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By brands, Prada revenue jumped by 14.3 percent, while Miu Miu climbed by 4.1 percent. Church's shoes saw revenues climb by 5.4 percent but Car Shoe had revenues fall.

"The objectives achieved to date, the flexibility of our organisational structure and constant monitoring of the markets mean we can look ahead with confidence to the near future," added Bertelli.

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