Prada bullish despite consumer slowdown fears
Luxury goods retailer reports 45pc increase in net income for 2012, and remains confident about sales amid plans to expand into new markets
Prada remains confident about its prospects this year, despite fears of poor consumer demand in Asia because of the weakening yen and Beijing's clampdown on lavish gift-giving.
The company said brand positioning and retail expansion will be key factors in 2013 even if the general economic environment remains challenging. Prada will proceed along a path of further investment in its retail network, it added.
Despite economic instability last year, Prada's net income increased 44.9 per cent from €431.9 million (HK$4.31 billion) in 2011 to €625.7 million last year.
"The group set new records in terms of revenue and earnings due to a sound equity and financial structure," said Patrizio Bertelli, chief executive of Prada.
The group set new records in terms of revenue and earnings due to a sound equity and financial structure
Retail represented 81.8 per cent of the group's consolidated net revenues compared to 77.9 per cent in 2011. Prada's directly operated stores sales generated revenues of €2.66 billion, a 35.6 per cent increase from 2011 owing to increased contributions from new and existing stores.
In 2012, Prada continued to enjoy healthy growth in Asia-Pacific where revenues increased by 32.9 per cent to €1.16 billion. Asia excluding Japan continues to be the leader with 36 per cent of sales, and 16 per cent and 15 per cent coming from Italy and the Americas respectively.
