Prada recovered in the second half of the year, settling retail sales at a more peaceful -6%, and the quotation price soared. A year ago the brand’s shares were trading around 30 Hong Kong dollars (where the stock is listed). At this time, they travel around 50 HK$. Prada announced that in the second half of the year it saw sales recover. In December, retail revenues (which came to generate 90% of turnover) reached the levels of 2019. Especially thanks to China.
Recovering in the second semester
On January 5, Prada board examined the performance of the second half of 2020. Faced with the impact of Coronavirus, in the July-December period the retail channel closed with 6% lower revenues at constant exchange rates compared to the same period of 2019. The Asia Pacific area shines, recording “positive performances, in particular China with + 52%”, reads the press release. In general, retail sales were “gradually recovering, until the full recovery, in December, to the levels of 2019”. Wholesale revenues were reduced on the precise strategy of the company led by Patrizio Bertelli (in the photo, on the right) and Miuccia Prada. Economically, the second half more than offset the losses of the first. Prada stated that the year closed with a positive EBIT (earnings before interest and taxes) and with an improvement in the net financial position.
“I am very satisfied with the way we faced the serious difficulties of the year that just ended – comments CEO Patrizio Bertelli – and how, despite the persistent situation of uncertainty that will continue over the next few months, we have managed to achieve positive results”.
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