Prada records higher sales, as luxury sector continues to rebound from Covid-19 disruption

·1-min read
 (REUTERS)
(REUTERS)

Prada has joined the list of luxury fashion firms reporting higher sales, as the industry continues to see a rebound from Covid-19 disruption.

The company behind the Prada, Miu Miu and Church’s brands, said retail revenues in the six months to June 30 were above pre-pandemic levels, even with some shops closed for lockdowns.

Total net revenues reached €1.5 billion (£1.3 billion), up 66% at constant exchange rates from a year earlier when travel restrictions hit footfall and a number of sites were temporarily closed.

Prada Group, led by Patrizio Bertelli, said retail sales were up 60% year on year, at constant exchange rates, and 8% ahead of the same period in 2019. Ecommerce growth has been strong.

Prada on the runway at Milan with their SS221 show (Imaxtree)
Prada on the runway at Milan with their SS221 show (Imaxtree)

The firm said once stores reopened in Europe they partially recovered. It has seen a strong performance in Asia Pacific and there was a significant improvement in the Americas business.

The update comes in the same week that two other luxury goods firms, LVMH and Kering, also revealed sales growth.

A number of analysts have said the sector is benefiting from well-heeled shoppers building up their savings during lockdowns.

A report from RBC Capital Markets earlier this month said: “Excess savings, wage inflation, asset price inflation all contribute to increasing disposable income and ‘feel good’ factors which are relevant in the purchasing decision pathway for luxury goods.”

Prada’s Bertelli, said: “The sales momentum will stay strong in the second half of the year.”

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