The Italian group Prada has exceeded its pre-pandemic levels in the first semester of 2021, reporting impressive results. The group, which includes renowned brands like Prada, Miu Miu, Church’s, and Car Shoe, achieved a revenue of 1.5 billion euros during this period, marking a significant increase of 60% compared to the first semester of 2020. This outstanding performance surpassed the experts’ predictions, who had forecasted a revenue of 1.42 billion euros. Furthermore, when compared to the same period in 2019, sales have shown an impressive growth of 8%.
One of the key factors contributing to this remarkable growth in revenue is Prada’s strategic focus on a more selective distribution network and its active embrace of e-commerce. The company has experienced a noteworthy triple-digit growth in online sales for five consecutive quarters, which now account for 7% of their total sales. This shift towards a more digital approach has proven vital in mitigating the adverse effects of the pandemic on the business.
In terms of geographical performance, the Americas region recorded the highest sales growth with an impressive 53% increase when compared to 2019. Following closely was the Asia-Pacific region, which experienced a substantial growth of 35%. The Middle East also displayed positive growth at 28%. However, Japan and Europe continue to struggle due to the lingering impact of the pandemic, with sales declining by 24% and 29% respectively. This decline can be attributed to lockdown measures and a decline in tourist flows in these regions.
Despite these challenges, Prada remains optimistic about the future and is confident in the strong sales momentum anticipated for the second half of the year. The company’s commitment to sustainability is also highlighted through its recent loans tied to sustainability objectives. Prada’s CEO, Patrizio Bertelli, emphasized the strong connection between the company’s brands and its consumers, which has resulted in robust sales growth across various markets and product categories.
Overall, Prada’s performance in the first semester of 2021 showcases its resilience and adaptability to changing market conditions. With its focus on selective distribution and e-commerce, Prada is well-positioned for continued growth and success in the luxury fashion industry.
Useful links:
1. Prada Official Website
2. Business of Fashion
