The Prada S.p.A. Board of Directors, held on March 10th, reviewed and approved the Consolidated Financial Results for the Full Year ended 31 December 2020.
The results show:
• a progressive improvement in Retail sales trend, thanks to growth in local consumption in the second half of the year in all geographical areas and a sharp acceleration in online sales up by more than 200% in FY2020;
• Total Net Revenues at Euro 2,423 million: the Prada Group’s response to the crisis was immediate, decisive and far-reaching. Each business function reviewed its activities and adapted to prioritise employee safety and customer centrality;
• The pandemic accelerated the digital evolution reinforcing the Prada Group’s ominchannel strategy;
• Sales from the e-commerce channel tripled from 2019 levels and the Group’s brand relevance in the digital world increased;
• The investment programme was revised during the year prioritising essential strategic projects;
• Some marketing initiatives were cancelled or postponed too, without compromising the visibility of the brands;
• Discretionary expenses were trimmed;
• The reopening of the stores in the various countries;
• Implement of an important programme of pop-ups and special installations, supported by a dedicated communication strategy.
All of these initiatives led to a full recovery in the second half to pre-pandemic profitability levels, allowing the Group to close the year with EBIT at Euro 20 million (Euro 216 million in H2) and a significant improvement in the net financial position at Euro -311 million improving from Euro -406 million in December 2019. Patrizio Bertelli, Chief Executive Officer of the Prada Group, commented: “In this disruptive year we have managed to achieve the goals we set ourselves, thanks to the commitment and high sense of responsibility of our people. We quickly responded to market changes, strengthening the relationship with local customers whose consumption in the second half of the year almost fully offset the absence of tourists. We successfully reached a good level of profitability and generated significant cash flow, improving our financial position. These results give us confidence to face the upcoming rebound, as soon as the most critical phase of the pandemic will end.”