Purpose and Values
Milan, 10th March 2021 - The pandemic had the greatest effect on the Group’s business in the first half of the year, although sales picked up gradually since May everywhere, to the point of full retail recovery in October and December compared with the same months of 2019.
The Prada Group’s response to the crisis was immediate, decisive and far-reaching. Each business function reviewed its activities and adapted to prioritise employee safety and customer centrality.
The pandemic accelerated the digital evolution reinforcing the Prada Group’s ominchannel strategy. Sales from the e-commerce channel tripled from 2019 levels and the Group’s brand relevance in the digital world increased.
The investment programme was revised during the year prioritising essential strategic projects. Some marketing initiatives were cancelled or postponed too, without compromising the visibility of the brands, and discretionary expenses were trimmed. At the same time, at the reopening of the stores in the various countries, an important programme of pop-ups and special installations was implemented, supported by a dedicated communication strategy.
All of these initiatives led to a full recovery in the second half to pre-pandemic profitability levels, allowing the Group to close the year with an operating profit in positive territory and a significant improvement in the net financial position compared with the beginning of the year.
Patrizio Bertelli, Chief Executive Officer of the Prada Group, commented: “In this disruptive year we have managed to achieve the goals we set ourselves, thanks to the commitment and high sense of responsibility of our people. We quickly responded to market changes, strengthening the relationship with local customers whose consumption in the second half of the year almost fully offset the absence of tourists. We successfully reached a good level of profitability and generated significant cash flow, improving our financial position. These results give us confidence to face the upcoming rebound, as soon as the most critical phase of the pandemic will end.”