Italian fashion group Prada is optimistic about its revenue rebound this year, as CEO Patrizio Bertelli expects sales growth to reach 2.9-3.1 billion euros. This projection comes after a decline in revenues to 2.42 billion euros in 2020, which was largely due to the impact of the COVID-19 pandemic. Despite the challenges faced, Prada intends to maintain its independence and prioritize internal growth. However, the company remains open to brand acquisitions if viable opportunities arise. With revenues reaching 3.23 billion euros in 2019, Prada has the potential to return to pre-pandemic levels in 2021, especially if it achieves the higher end of its projected sales growth.
According to consulting firm Bain, the luxury sector as a whole is not expected to fully recover to 2019 levels until late 2022 or early 2023. Therefore, the performance of Prada this year will heavily depend on the development of the pandemic and associated restrictions. Bertelli highlighted the importance of travel resuming, as it would significantly drive the company’s recovery. While local consumption in China has been strong, the return of travel would likely result in an improvement in sales overall.
Prada experienced a turnaround in sales and profits towards the end of 2020, driven in part by a solid performance in China and other parts of Asia. This positive trend has carried over to 2021. Bertelli reaffirmed that the company has no plans to divest smaller brands like Church’s formal shoes and Car Shoe. However, Prada is open to seizing growth opportunities through the acquisition of larger or medium-small brands that have substantial growth potential. The Bertelli-Prada family, who hold an 80% stake in the fashion group, are committed to maintaining the company’s independence and have no intention of selling.
In the late 1970s, Patrizio Bertelli and Miuccia Prada, his wife and the brand’s creative director, transformed Prada from a historic leather goods company in Milan into a modern fashion group. The brand experienced significant international expansion in the 1990s and was listed on the Hong Kong Stock Exchange in 2011. Moving forward, Prada is dedicated to its own development and maximizing growth opportunities.
Useful Links:
– For more information on Prada: Prada Official Website
– To explore luxury fashion trends: Business of Fashion
