MILAN — The Prada Group’s performance in 2020 was affected by the impact of the pandemic in the first half, but the Italian luxury group reported a recovery starting in May last year, reaching full retail recovery in October and December compared with the same months of 2019.
Business was also lifted by Prada’s digital evolution as the company reinforced its omnichannel strategy, seeing sales from the e-commerce channel tripling from 2019 levels. Sales in mainland China climbed 52 percent in the second half of 2020.
While Prada reported a loss for the year, the group saw a full recovery in the second half to pre-pandemic profitability levels, allowing it to finish 2020 with an operating profit. Operating profit amounted to 20 million euros, compared with 307 million euros in 2019. However, in the second half operating profit totaled 216 million euros.
Prada reported a net loss of 54 million euros for all of 2020. This compares with net profits of 256 million euros in 2019, but this figure was lifted by the Patent Box tax benefit. In the second half of last year, Prada registered a net profit of 126 million euros.
In the 12 months ended Dec. 31, revenues totaled 2.42 billion euros, down 24.8 percent compared with 3.22 billion euros in 2020. Sales in the second half decreased 8 percent compared with the same period in the previous year.
“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,” said chief executive officer Patrizio Bertelli. “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.”
At the end of December, retail sales amounted to 2.11 billion euros, down by 32 percent in the first half and reduced to a 6 percent decrease in the second half of the year, hence an 18 percent drop over the year.