MILAN — Full-price sales, a positive trend in wholesale and a strong performance of its ready-to-wear and footwear collections helped Prada SpA see gains in profits and revenues in the first half of the year.
In the six months ended June 30, net profits jumped 46.6 percent to 155 million euros, benefitting from the Patent Box tax relief relating to the years 2015-19. In the same period last year, profits totaled 105.7 million euros.
Sales rose 2 percent to 1.57 billion euros compared with 1.53 billion euros in the prior year. At constant exchange rates, revenues were flat.
“Our strategic decision to stop seasonal markdowns and to rationalize the wholesale channel has been well-received by the market: Full-price retail sales increased across the main geographies and product categories, reflecting the soundness of our choice,” said chief executive officer Patrizio Bertelli. “We believe that improving consistency in pricing will reinforce the relationship with customers and enhance product value. Our Prada and Miu Miu collections are receiving significant appreciation from the market, confirming the strength of our stylistic leadership. We are strongly committed to driving digital technology across the business, leading to more efficient-decision making, as we are aware that digital innovation is key to compete in an evolving market. Executing this program is the necessary step toward sustainable revenue and margin growth, which we will target by strengthening our brands’ cultural heritage — essential to our group’s future.”
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