Prada S.p.A.’s Board of Directors met on 8 September in Milan to examine and approve the consolidated financial results for the first six months of 2017. Despite a 5.5% fall in revenue compared to the same period in 2016, with receipts of €1,469 million, the gross margin went up from 72.2% in the previous six months to 74.1%. This was thanks to better quality revenue caused by a reduction in markdown sales.
EBITDA fell to € 279.6 million, equivalent to 19.1% of income (down from 21.2% in 2016), and net income was also down, at € 116 million (-1.2%).
The cost review programme, launched during the last financial year and applied to all operating processes, continued to produce tangible results, despite increased expenditure on the digital and communications strategy.
The optimisation of the sales network also continued: during the period the Group opened six stores and closed 13, meaning that as of 31 July 2017 the group’s retail network comprised 613 directly operated stores.
Investment in the period totalled € 105.6 million, allocated both to enhancing the retail network, with 100 projects designed to bring the image of the stores in line with new design concepts, and to strengthening the supply chain, with the aim of further expanding the Group’s industrial and logistical capacity.
In his statement Patrizio Bertelli, CEO of Prada SpA, said: “We are confident that our action plan is the best way to return to steady growth in revenues and margins, albeit aware that the benefits may take longer than expected. Our cash flow and balance sheet remain solid, allowing us to focus on value creation for shareholders over a broad time horizon.”
Prada Group: half-year results
