A week of six months from which the high-end sector comes out with record results and the confirmation that it has fully recovered pre-Covid levels and that it is facing the rebound and uncertainties of the second half with an auspicious start. The term borrowed from the world of boats is particularly suitable for the Prada group which looks to 2023 also because it will be the year in which preparation for the 37th America’s Cupwhich will then be held in the waters of Barcelona in 2024 and the Luna Rossa Prada Pirelli team will be among the challengers to the holders of the trophy, the New Zealanders.
Revenues for the first six months are close to 2 billion
The turnover for the first half of the Prada group (brands Prada, Miu Miu, Car Shoe, Church’s and Marchesi 1824) grew by 22% to 1.9 billion, while retail sales (increasingly significant on the total, the percentage is 90%) reached 1.7 billion (+ 26% on the first half of 2021, + 38% on the first half of 2019). As for brands, the strong appreciation of Prada generated a growth of 28% compared to the first half of 2021 and 46% compared to the first half of 2019; the high visibility of Miu Miu and the success of the collection for spring-summer 2022 contributed to an increase in sales of + 4% compared to the first half of 2021, with results beyond pre-Covid levels
(in the picture, a moment of the men’s collection show for spring-summer 2023, which took place at the Fondazione Prada in June, during the men’s fashion week in Milan).
Sales by geographical area
In the note released at the close of the Hong Kong Stock Exchange, where Prada is listed, the divisions of revenues by geographical area are also read. To suffer was theAsia Pacific: since mid-March, about 30% (on average) of the group’s stores in China have been closed due to a series of lockdowns. The decline in sales of the entire area (equal to 590 million) is equal to 7% compared to the first half of 2021, with the impact of China mitigated by the very positive performances in Korea and South East Asia. L’Europa recorded strong growth (+ 89%) supported by local consumption and a return of tourist flows starting from the second quarter of 2022. Sales in America they recorded an excellent performance (+ 41%) compared to the first half of 2021 and amounted to 360 million, with a triple-digit growth compared to pre-Covid levels. In Japan the trend improved during the half year, with a growth of 28% compared to the first half of 2021 and sales of 161 million. Even the Middle East recorded a solid performance, with sales up 24% compared to the first half of 2021.
Profitability indices
The enrichment of the offer and the operational efficiency – the note also reads – have made it possible to achieve a gross margin of 77.7%, a adjusted ebit margin of 17.4% and a Net income of 188 million, against a loss of 102 in the first half of 2021. The net financial position at 30 June was positive for 179 million.
The Esg strategy
The Prada group has placed sustainability at the center of its business decisions and in the first half of 2022 it took a series of actions aimed at pursuing the communicated objectives. Progress has been made towards achieving the greenhouse gas emission reduction targets of Scope 1 and 2, and the effort to create awareness within the organization continues. The ambition, in the medium and long term, is to take a recognized position in the sector with regard to specific ESG areas.