Prada: Net Income 205 Million Euro In 2018, Opening 29 New Outlets

In March 15th, Prada announced that in the fiscal year ended December 31, 2018, the net profit of the group was 3 billion 142 million euros, an increase of 6% compared with the fixed exchange rate, while the current exchange rate rose by 2.8%. Net income was 205 million euros, which was 17.5% lower than the current exchange rate.

During the reporting period, the group's profit before interest tax depreciation and amortization was 551 million euros, and the pre tax profit was 324 million euros.

The basic and diluted earnings per share are 0.080 euros, and the proposed dividend is 0.06 euros per share.

Source: Prada 2018 annual consolidated performance Bulletin

The announcement shows that the net retail sales for the 12 months ended December 31, 2018 were 2 billion 532 million euros, up 6.8% from the fixed exchange rate year by year, while the current exchange rate increased by 3.6%, showing a positive trend in brands, products and regions.

Despite the slowdown in the latter months of the year, mainly due to fluctuations in some markets and strategic decision to reduce discount sales, sales performance was positive during the year.

The number of Direct stores increased from 625 in December 31, 2017 to 634 in December 31, 2018.

During the period, 29 new outlets were opened and 20 direct outlets were closed.

Wholesale channel sales increased by 1.3% based on fixed exchange rates, while the current exchange rate increased by 0.3%, basically the same as in the previous period.

The increase in wholesale orders issued to electronic retailers is in line with our group's strategy.

The net sales in the Asia Pacific market increased by 9.7% at fixed exchange rates, as a result of the gains recorded in all major markets in 2017 due to the growth of local customer groups and tourism in the region.

The net sales of Greater China amounted to 675 million euros, up by 8.2% at fixed exchange rates, and by 4.5% at current exchange rates.

European sales rose by 2.8% at fixed exchange rates (up 1.6% from current exchange rates).

Growth is mainly concentrated on local customers.

Japan's higher net sales rose by 7.4% at fixed exchange rates and increased by 4% at current exchange rates, mainly due to the revival of consumer spending.

Clothing sales increased by 9.6% at fixed exchange rates, and sales in all Prada and MiuMiu markets increased.

Sales of leather goods increased by 5.9% according to fixed exchange rate, and handbag sales increased the most.

Sales growth was recorded in all regions.

Sales of footwear sales increased by 1.5% at fixed exchange rates, with different trends in various markets: double-digit growth in Japan and the Asia Pacific market, while sales in the Americas market declined slightly and concentrated in wholesale channels.

The net sales of Prada brand increased by 6.7% according to the fixed exchange rate.

According to the fixed exchange rate, all product categories were recorded higher sales than in 2017.

MiuMiu net sales increased by 1.7% according to the fixed exchange rate, reflecting the growth of clothing and the stable performance of footwear and leather goods compared with the previous period.

Church 's brand declined by 1.6% according to the fixed exchange rate.

Retail sales growth is achieved through existing stores and newly opened 6 stores, which offset the sales of independent customers.

The restructuring of Church 's wholesale distribution channels over the past two years coincided with a brief performance downturn.

It is understood that Prada group has been declining sales and profits for three consecutive years.

In the past two years, Prada group began to change its strategy. The business pformation period started in 2017 is having positive effects.

Prada group has launched a technology upgrading plan, which will enhance the control and efficiency of all business elements from marketing to logistics, from production to customer service.

The digital pformation has completely changed the relationship between groups and consumers.

To achieve this goal, Prada group will continue to invest in digital assets, providing unique superior experience at all contact points and building brand experience as if it were on the scene.