Pursuits
Prada Shares Surge as Chairman Forecasts Improvement in 2017
- First-half earnings fell slightly less than analysts estimated
- Luxury-goods maker is expanding online in Asia, cutting costs
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Prada SpA shares rose as much as 15 percent after Chairman Carlo Mazzi forecast that the Italian luxury-goods maker will return to growth in sales and earnings next year, helped by cost-cutting and online expansion in Asia.
This year “is a turning point and we are now firmly on the path to sustainable growth in revenues and earnings from as early as 2017,” Mazzi said on an Aug. 26 conference call after the Hong Kong market closed. First-half earnings before interest, tax, depreciation and amortization fell 25 percent to 330 million euros ($370 million), dropping slightly less than analysts estimated.