Prada Sales Exceed Estimates on Higher Demand in Asia
Prada SpA (1913), the Italian fashion company that owns the Miu Miu and Church’s brands, climbed to a record in Hong Kong trading after posting first-half sales that beat analyst estimates amid higher demand from Asian shoppers.
Prada rose as much as 4.4 percent to HK$56, the highest level since its public offering in June last year, before gaining 3 percent to HK$55.25 at 9:50 a.m. local time. The benchmark Hang Seng index gained 0.2 percent.
Sales increased 37 percent from a year earlier to 1.55 billion euros ($1.9 billion) in the six months ended July 31, the company said yesterday. Analysts projected revenue of 1.5 billion euros, based on the average of seven estimates compiled by Bloomberg.
Chief Executive Officer Patrizio Bertelli is counting on the strength of Prada’s brand to overcome Europe’s sovereign- debt crisis and slowing economic growth in China. The company has lower store penetration than competitors, giving it a lot of potential to expand, according to Candy Huang, an analyst at Barclays Plc in Hong Kong.
The company said its directly operated stores recorded a like-for-like sales growth of 19 percent. Prada’s revenue increased 31 percent in the Americas, 37 percent in Europe and 45 percent in Asia Pacific ex-Japan during the period.
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