2019 and present time for Prada has consisted of an inevitable path between the “great progress” (of last year) and the (current) emergency situation. After all, analysts had forecasted a revenue of 3.21 billion euro and operating income of 306 million euro (according to Refinitiv). While 2019 was archived with 3.226 billion euro in net sales, +3% at current rates and stable at constant rates.
EBIT was of 307 million euro, in comparison to the 324 million of 2018. Net income grew to 256 million euro from the previous 205, thanks to “Patent Box” fiscal concessions. The brand’s strategy to limit the retailing of “on sale” items and Hong Kong’s protests weighed down n the results.
Sales and brands
Accessories and leather goods’ sales generated 56% of the organization’s total revenue. They grew by 2% at current rates, but decreased by -1% at current rates. Footwear sales, weighing 18% of revenue, also grew by 2% at current rates but remained the same at constant rates. The brands performances (at constant rates) were: Prada+2%, Miu Miu -2%, Church’s -3%, Car Shoe +13%.
The comment and emergency
Patrizio Bertelli, CEO of Prada Group commented: “2019 was a year of great progress for us. The beginning of 2020 had been very favourable, but the Coronavirus pandemic has skewed our growth curve. While it is difficult to precisely evaluate its evolution, we expect a negative impact on our results for this year. We are implementing a complete emergency plan to mitigate it. We focused on the flexibility of our supply chain and our lean organization. The stability of our financial structure gives us the necessary confidence to believe we will overcome this moment and will be ready to recover when the opportunity presents itself”.
Picture from prada.com