Moscow. December 16. The Italian fashion house Prada SpA for ten months of the 2015 financial year reduced net profit by more than a quarter amid challenging market conditions. According to the press release, net income in the January-October amounted to EUR 235,1 million against 319,3 million Euro in the same period last year, a decrease of 26.4%.
Earnings before interest and taxes (EBIT) fell by 24.7% and amounted to 373,9 million euros, earnings before interest, tax and depreciation charges (EBITDA) decreased by 12.7% to 595,4 million euros.
“Market conditions continue to be volatile amid volatile financial markets and growing geopolitical tensions around the world that affect tourism and consumer evaluations, – stated in the message. – Buyers of luxury goods are becoming more sophisticated, selective and looking for more exclusivity”.
Prada revenue for the nine months increased 1.2% to 2,583 billion euros, compared with 2,552 billion euros a year earlier. However, excluding changes in foreign exchange rates the index fell by 7%.
Retail sales grew by 4% (up to 2,172 billion euros), while wholesale fell by 16% (to 351.5 million euros).
Prada sees no signs of improvement in the retail segment of the Asia-Pacific region, especially in China. At the same time Europe and Japan show organic sales growth thanks to tourism. Sales in the U.S. weakened in the third quarter due to the strengthening of the dollar.
Sales of Prada brand, which accounts for over 80% of the company’s revenues increased in January-October, up 2% (organic decline of 6%), the brand Miu Miu 12% (organic growth 2 percent).
The company, which was originally known as Prada Brothers and sold mostly leather goods, was founded in 1913 by Mario Prada and his brother Martino in Milan. In 1978 the company was inherited by his granddaughter Miuccia Prada.
Currently Prada operates in 70 countries worldwide, its largest store is located in Dubai. Among the brands of the company includes, in particular, Miu Miu (youth line), Car Shoe (apparel and footwear) and Church’s (English Shoe manufacturer).