Prada’s 2020 is red. Revenue dropped by 24% and the financial results for the year show a net loss of 54 million euro. “We managed to achieve our objectives even during this disruptive year”, commented Patrizio Bertelli. The group’s CEO is looking to the future with faith: “These results provide us the necessary trust to face the upcoming recovery, as soon as the critical phase of the pandemic will be over”.
Prada group closed 2020 with a revenue of 2.42 billion euro, down 24% at constant rates (-8% in the second semester). Net profits of 126 million euro generated in the 2nd semester didn’t stop the group from closing the year with a loss of 54 million euro. Sales from the e-commerce channel tripled compared to 2019. At the same time, retail sales in Russia grew by 46%.
The pandemic had “a stronger impact on the first half of the year – recites the official financial note by the group -. Sales gradually recovered starting in May and returned to past levels in October and December, with regards to retail volumes”. “We have 130 stores that are still closed due to the pandemic – says Mr. Bertelli according to Reuters -, and the group’s performance in early 2021 is quite good anyway”. The first few months of 2021 showed an increase in sales volume, compared to the first part of 2020, and are higher than those of 2019, explained the CFO Alessandra Cozzani.
The leather goods division, which accounts for 56% of the brand’s revenue, lost 19% in 2020. Footwear, worth 17% of the total revenue, lost 23%. As far as single brands go, Prada’s retail sales decreased by 17%, Miu Miu’s by 22% and Church’s by 47%.