Prada First-Half Sales Climb 12% Boosted by Asian Growth
Prada SpA (1913), an Italian maker of $1,870 handbags, reported a 12 percent increase in first-half sales boosted by growth in Asia.
Revenue advanced to 1.73 billion euros ($2.3 billion) in the six months through July, Milan-based Prada said today in a statement. Analysts predicted 1.75 billion euros according to the average of three estimates compiled by Bloomberg. Same-store sales rose 7 percent.
The luxury goods industry is rebounding after a stuttering start to the year with LVMH Moet Hennessy Louis Vuitton SA (MC) and Gucci-owner Kering (KER) SA last month reporting accelerating sales. Prada, which aims to grow without making acquisitions, said in June it is confident of high single-digit percentage growth in like-for-like sales this year as it opens as many as 80 stores. It had 491 directly-operated shops at the end of July.
“Overall, a slightly disappointing set of figures,” Cantor Fitzgerald analyst Allegra Perry said, citing decelerating second-quarter sales. However, we “believe this reflects self-help measures in wholesale.” She recommends buying the shares.
Prada said it reduced the number of its third-party distributors by more than 100.
Sales gained 18 percent in the Asia Pacific region, 16 percent in Japan and 14 percent in the Americas. European sales grew 5.7 percent.
Prada’s earnings were released after the close of the Hong Kong stock market, where its shares trade. The stock fell 1.5 percent to HK$71.40 today, giving the owner of brands including Miu Miu, Church and Car Shoe a market value of HK$182.7 billion ($23.6 billion).