Strong semester underpinned by strategic delivery and brand momentum
Currently on accelerated trajectory to achieve mid-term targets
Milan, 28th July 2022 - The Prada S.p.A. Board of Directors today reviewed and approved the Consolidated Financial Results for the Half Year ended 30th June 2022.
Key highlights - growth % at constant currency:
Patrizio Bertelli, Prada Group Chief Executive Officer, commented:
“In the first six months of 2022, Prada Group delivered growth in both revenue and profitability, continuing to invest with a long-term perspective in creativity, industrial know-how and product innovation. We keep building sustainability into the heart of our business; we want our actions to align with Prada’s distinctive identity, making us relevant and inspiring to customers. Thanks to our global presence and geographical distribution of sales, we have more than compensated the impact of the various lockdowns in Mainland China and sanctions on Russia, where we continue to support our people despite store closures. Although current trading is strong, the global political and economic outlook is very uncertain and provides ground for caution. Our position of strength gives us confidence to execute against our strategy to fully exploit our brands’ potential. We are confident that we will achieve our medium-term financial and operational targets.”
Retail channel drives growth
The Retail channel saw strong growth in sales up 26% yoy fueled by the offer of new and iconic products with clear identity, driving a very good performance across all product categories. At brand level, Prada’s strong momentum delivered a sales increase of 28% yoy, up 46% on H1-19, while Miu Miu’s growing visibility and acclaimed SS Fashion Show delivered sales up 14% yoy and above pre-pandemic levels.
We continue to see robust growth in the online channel and overall Retail contribution currently accounts for 90% of Sales.
Asia Pacific declined by 7% yoy to €590 mln as lockdowns in Mainland China from mid-March impacted c.30% of the Group’s network; this impact was mitigated by the strong performance in Korea and South East Asia.
Mainland China has seen an improved trend since store re-openings in June.
Strong performance in Europe with sharp growth of 89% yoy across the region, driven by domestic sales and an uptick in tourism in Q2-22.
The Americas have generated an outstanding sales performance of €360 mln, up 41% yoy and triple-digit growth on pre-pandemic levels.
Japan saw an accelerating trend in the semester, generating €161 mln of sales up 28% yoy.
Middle East also registered a solid performance with sales up 24% yoy.
Wholesale: Rationalisation largely completed
The Group maintained a selective approach to the Wholesale channel with revenue slightly decreasing by 3% yoy.
ESG: Our Group journey continues
The Prada Group has placed sustainability at the heart of its business approach and took a number of steps in H1 to deliver progress towards its objectives. We have advanced on Scope 1 & 2 emissions targets and we have continued to develop awareness within the organisation. Our ambition, in the medium and long-term, is to become highly relevant within the industry in specific ESG areas.
Confident on ability to achieve medium-term targets despite macro-economic uncertainty
Despite the highly uncertain global macro-economic environment, current trading remains strong and H1-22 results accelerated the Group’s trajectory towards the mid-term targets. Going forward, several factors could influence our performance, including the development of the health situation, the rate of recovery in consumer spending in Mainland China, and global geopolitical developments and economic risks as authorities seek to manage challenges of inflation and possible recession.
These significant uncertainties make us vigilant, but the Group will continue to pursue its strategy with confidence and determination. We will continue to develop our brands focusing on creativity, quality and customer experience.
To achieve long-term sustainable growth, we intend to balance margin improvement with continued investment in our people, distribution network, technological and manufacturing infrastructure, omni-channel capabilities, and sustainability.
1 EBIT Adjusted excludes Other non-recurring income and expenses that, for the six months ended June 30, 2022, consisted of €26 mln write-down of non-current assets in Russia