Prada Revenue Drops 40 Percent Due To Coronavirus
Prada Revenue Drops 40 Percent Due To Coronavirus

Prada saw a drop in its revenue by 40 percent in the first half of the year due to the ongoing coronavirus pandemic. For the six months to 30 June, the group moved to a 180 million euro loss compared to profits of 155 million euros in the same period last year. The label was […]

Prada saw a drop in its revenue by 40 percent in the first half of the year due to the ongoing coronavirus pandemic.

 

For the six months to 30 June, the group moved to a 180 million euro loss compared to profits of 155 million euros in the same period last year. The label was hit hard by closure of stores internationally. The retail sales were down by 32 percent whereas, the wholesale sales dropped by 71 percent.

 

In terms of retail, all regions were impacted by store closures, with the Middle East (-44 percent), Americas (-42 percent), and Europe (-41 percent) hit hardest, though Japan (-39 percent) and Asia Pacific (-39 percent) also registered double-digit declines, as reported by Fashion United. The company said that they have seen a growth in recovery as there was double-digit growth in Mainland China since April.

 

Patrizio Bertelli, Prada Group CEO, commented: “I am very proud of the commitment and sense of responsibility demonstrated in these circumstances by all our people. The first half of 2020 saw a temporary interruption of our growth trajectory which, in a situation of progressive control of the pandemic, we are confident will gradually resume from the second half of 2020, when our store network will again be fully operational.

 

“The excellent response of local consumers after the re-openings, confirms the desirability of our products and the strong relationship with our customers, which has been further strengthened by our continued focus on digital technology. The recent positive trends in all markets, combined with our solid balance sheet and financial position, allow us to look to the future with confidence today.”

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