Prada Group announced on May 11 “solid growth” for its first quarter, posting EUR 1.065 billion (USD 1.6 billion) in net revenues, up 22 percent, despite an uncertain macroeconomic environment.
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By region, Asia Pacific saw a strong rebound in the first quarter ending March 31, with retail sales up 22 percent. China returned to growth with a further yearly acceleration towards the end of the quarter supported by easier comparables. The luxury Italian group said it also continued to experience solid growth in Southeast Asia as well.
The opening quarter also witnessed sharp growth in Japan, up 55 percent, benefitting from the group’s recent investment in the retail network, solid domestic demand, and increasing tourism flows.
The retail channel saw continued growth, up 23 percent, driven by strong like-for-like and full price sales.
At group level, leather goods grew by 14 percent at constant exchange rates, driven by both new and iconic lines, while ready-to-wear remained the fastest growing category, up 38 percent. Retail sales of footwear also grew strongly, up 20 percent, with continued success of both formal and lifestyle collections.
“Prada Group has had a positive start to the year. Over the course of the first quarter, China returned to be an engine of growth, driving a solid sales rebound in Asia Pacific,” said Andrea Guerra, group chief executive officer.
“Our priority for the year remains increasing store productivity, focusing on retail execution. Meanwhile, we will continue to invest behind our brands, our stores, and our infrastructure for the growth of tomorrow. The ever-evolving macro and market backdrop requires us to be vigilant, but we see benefits in accelerating these investments, if conditions remain supportive.”