The Prada Group’s Board of Directors approved the Consolidated Financial Results for the Half Year, ended 30 June 2020. When the health emergency interrupted the Group’s strong revenue momentum – registered up until the end of January 2020 – the Prada Group reacted promptly, reviewing its priorities and adapting to the new situation. Following the reopening of the store network, the Group has seen ongoing recovering sales trends, with significant growth in Asia and encouraging signs in other markets, the latter driven by local consumption and despite the lack of tourism. The Group’s solid balance sheet and financial position remain unchanged, thanks also to the disciplined cost containment and expenditure control measures introduced throughout the period.
Key highlights
- On average 40% of the Retail network was closed from February to May, reaching a peak of 70% in April;
- Retail sales significantly impacted by closures but sequentially improving on reopening;
- Wholesale channel heavily reduced, following the decision taken in 2019 to strictly control all distribution channels to protect brand positioning;
- E-commerce delivered triple-digit sales growth during and after the lockdowns;
- Effective management of the supply chain supported stable gross margins;
- Investments limited to strategic projects;
- Dividend distribution suspended.
Key numbers (at constant exchange rates)
- Retail sales down 32%;
- Wholesale sales down 71%;
- Total Net Revenues at Euro 938 million, down 40%;
- Net loss at Euro -180 million.
Patrizio Bertelli, Prada Group CEO, commented: “I am very proud of the commitment and sense of responsibility demonstrated in these circumstances by all our people. The first half of 2020 saw a temporary interruption of our growth trajectory which, in a situation of progressive control of the pandemic, we are confident will gradually resume from the second half of 2020, when our store network will again be fully operational. The excellent response of local consumers after the re-openings confirms the desirability of our products and the strong relationship with our customers, which has been further strengthened by our continued focus on digital technology. The recent positive trends in all markets.