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UPDATE 1-Prada's mid-term targets look closer after strong first half

UPDATE 1-Prada's mid-term targets look closer after strong first half

Reuters · 07/28/2022 08:07
UPDATE 1-Prada's mid-term targets look closer after strong first half

Adds detail

- Luxury fashion group Prada 1913.HK beat first-half sales and profit forecasts on Thursday and said it could reach its mid-term targets earlier than planned, although that would depend on how the current uncertain economic environment unfolds.

In the six month to June sales were boosted by Europe, the Americas, and Japan and South Korea in Asia, the Italian company said. However, sales in the Asia Pacific region overall declined by 7% in the period as lockdowns in mainland China from mid-March impacted around 30% of group stores. The key Chinese market showed "an improved trend since store re-openings in June", Prada said.

The company reported a 22% jump in total revenue to 1.9 billion euros ($1.92 billion) for the first six months of this year, above analysts expectations of 1.8 billion euros according to a Refinitiv consensus.

Operating profit also topped the consensus at 305 million euros, up from 166 million euros in the first half of last year, with an EBIT adjusted margin at 17.4% of total sales.

In November the group unveiled its medium-term goals of 4.5 billion euros sales and a 20% operating profit margin.

"Despite the highly uncertain global macro-economic environment, current trading remains strong and H1 results accelerated the group's trajectory towards the mid-term targets," the company, which is listed in Hong Kong, said.

Thanks to its geographical sales distribution, the group has "more than compensated for the impact of lockdowns in China and sanctions on Russia, where we continue to support our people despite store closures", Chief Executive Patrizio Bertelli said in a statement. He added that the current trading "is strong" but global political and economic outlook "is very uncertain and provides ground for caution".


($1 = 0.9878 euros)


(Reporting by Claudia Cristoferi, editing by Susan Fenton)

((Claudia.Cristoferi@thomsonreuters.com; +39 3480848422;))