Prada Nine-Month Net Triples as Asian Shoppers Buy More Luxury
Prada SpA, the Italian fashion company that’s exploring options to revive an initial public offering, said nine-month profit “tripled” as shoppers in Asia spent more on its products.
Net income rose to 156 million euros ($208.2 million) the Milan-based company said today in a statement, without providing a year-earlier figure. Revenue increased 31 percent to 1.39 billion euros. Sales grew in all markets, rising 51 percent in Asia, excluding Japan, 27 percent in the U.S. and 20 percent in Europe, Prada said.
Sales of luxury goods may climb this year to the highest level since 2007, led by demand in China and a rebound in the U.S., Bain & Co. estimates. Prada said Oct. 6 it was monitoring market conditions for a possible IPO and considering a listing in Hong Kong.
The nine-month results “let us confidently look at” the group’s future development, Prada Chief Executive Officer Patrizio Bertelli said in the statement.
Revenue increased in both the wholesale and retail channels, with stores directly operated by Prada posting 44 percent growth, Prada said. Excluding new stores and currency fluctuations, retail sales climbed 23 percent. Sales by third- party distributors rose 9 percent, Prada said.
Earnings before interest, taxes, depreciation and amortization advanced to 330 million euros, the company said, without providing a year-earlier figure. Prada directly operates 310 stores in 65 countries under its eponymous brand and the Miu Miu, Church’s and Car Shoe labels.
The Italian fashion company’s revenue may reach 2 billion euros in 2010, while Ebitda may be between 450 million euros and 500 million euros, three people familiar with the situation said last month.
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