Prada S.P.A. Approves Group Results as of 30 June 2020

Valvigna, 29 July 2020 – The Prada S.p.A. Board of Directors held today reviewed and approved the Consolidated Financial Results for the Half Year ended 30 June 2020.

Key highlights

  • On average 40% of the Retail network was closed from February to May, reaching a peak of 70% in April
  • Retail sales significantly impacted by closures but sequentially improving on reopening
  • Wholesale channel heavily reduced, following the decision taken in 2019 to strictly control all distribution channels to protect brand positioning
  • E-commerce delivered triple-digit sales growth during and after the lockdowns
  • Disciplined approach contained costs, with significant reductions in all areas
  • Effective management of the supply chain supported stable gross margins
  • Investments limited to strategic projects
  • Dividend distribution suspended
  • Solid Balance Sheet and Net Financial Position

Key numbers

  • Retail sales down 32% at constant FX
  • Wholesale sales down 71% at constant FX
  • Total Net Revenues at Euro 938 million, down 40% at constant FX
  • Selling expenses of closed stores during lockdowns at Euro 112 million
  • EBIT before selling expenses of the closed stores during lockdowns at Euro -83 million
  • Net loss at Euro -180 million
  • Capex at Euro 49 million
  • Net Financial Position at Euro -515 million

Patrizio Bertelli, Prada Group CEO, commented: “I am very proud of the commitment and sense of responsibility demonstrated in these circumstances by all our people. The first half of 2020 saw a temporary interruption of our growth trajectory which, in a situation of progressive control of the pandemic, we are confident will gradually resume from the second half of 2020, when our store network will again be fully operational. The excellent response of local consumers after the re-openings confirms the desirability of our products and the strong relationship with our customers, which has been further strengthened by our continued focus on digital technology. The recent positive trends in all markets, combined with our solid balance sheet and financial position, allow us to look to the future with confidence today.”

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