MILAN – Prada SpA on Friday reported 2018 net profits of 205 million euros, down 17.6 percent from 249 million euros in 2017.
In the 12 months ended Dec. 31, revenues at the Italian luxury house totaled 3.14 billion euros, up 3 percent compared with 3.05 billion euros, in 2017. At constant exchange rates, sales grew 6 percent. The performance was lifted by the retail channel and progress in all geographic areas and across product categories.
“The results of 2018 demonstrate that our recent initiatives have been met with a positive reaction by the market, with a return in terms of revenue growth,” said chief executive officer Patrizio Bertelli. “The strategic renewal and subsequent organizational review, which will be completed in the months to come, will give the
company a more dynamic structure and a renewed capacity to interpret the cultural evolution of the new generations with which to share the identity of our brands.
“We have already started a technological upgrade program that will increase control and efficiency of all business factors, from marketing to logistics and from product to customer service. It is clear that the digital transformation has radically altered relationships with consumers, making them ever more aware of their purchasing choices. In this context, communication takes on an even more crucial importance to effectively reach our customers. With this objective in mind, we will continue to invest in all our digital assets to create an increasingly immersive brand experience with a unique and engaging involvement at all touch points. We are also investing to strengthen the industrial infrastructure to ensure timely responses to the different needs of the individual markets, translating our creative vision of the evolution of looks into products readily available at our stores. In the next few months we will be engaged in accelerating this renewal process, and I am certain that all those initiatives, essential for the group’s future, will create value for our shareholders in the medium-long term.”