Burning sandals Prada fall-winter 2018
Prada caught a wave of Chinese luxury demand and returned to growth
After three years of falling sales Prada SpA. returned to growth in six months 2018, analysts at Blumberg say.
The company's retail sales grew by 9,7%, resulting in sales turnover reaching 1,54 billion euros ($ 1,8 billion), - said the management of Prada SpA. on Wednesday. At the same time, analysts predicted the group’s revenue - 1,52 billion euros.
The Italian company was a little late, but began to reap the benefits of the growing demand for luxury goods in China, thanks to which LVMH and Kering rose last year.
Prada pulled up prices and worked hard to diversify the design of the hit Galleria brand handbag, while efforts to develop online communication and update the shoe line were weak.
According to Prada, in the first half of the year, good results were achieved in the sale of new models of sneakers, while sales of leather goods had the opposite effect.
Sales have grown thanks to 36's new pop-up stores and partner electronic sites such as the Yoox Net-A-Porter Group and Farfeth.
The positive trend continued in July and may continue in the second half of the year, thanks to the restart of the Linea Rossa sportswear line, the company commented.
“We are constantly working to change the holding in order to adapt to the rapidly changing circumstances of our time,” said group leader Carlo Mazzi.
The fashion for waist bags and cross-body bags provoked an interest in nylon black accessories from the spring Prada collection, while the display of the brother brand MiuMiu caused a surge of interest in social networks thanks to the popular actresses El Fanning and Chloe Sevigny.
The company's profit margin for six months rose from 17% to 18%, however, it is still far from the status of a “cash cow” that it enjoyed at the peak of its activity, and this is just a small achievement compared to the 30% growth of the Paris Hermes business International
After three years of falling sales, Prada SpA returned to growth in the six months of 2018, according to Bloomberg. Retail sales of the company grew by 9,7%, resulting in sales of 1,54 billion ...
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