Prada SpA’s sales rose less than expected in the first half of the year, as demand slowed for the Italian fashion group’s eponymous brand amid a broader slump in the luxury market.
Net revenue for the group rose 9 percent at constant currencies, the Hong Kong-listed company said Wednesday, below analyst estimates. Sales at the Prada brand slid 2 percent against a “challenging” and “somewhat unprecedented” backdrop, the company said.
Like its peers, Prada has grappled with a downturn in demand as US president Donald Trump’s trade tariffs exacerbated economic uncertainty. The company’s shares have dropped about 22 percent so far this year, and chairman Patrizio Bertelli said he expects economic turbulence to continue in the short term.
There have been signs of improvement. Hermès reported a 9 percent rise in sales on Wednesday, while LVMH Moët Hennessy Louis Vuitton SE bounced back last week as some investors started to call the bottom of the slump.
Prada said retail sales at Miu Miu, which is particularly popular among younger customers, grew 49 percent from a year earlier. Overall group sales rose the most in the Middle East and the Americas, with both beating analyst estimates. Asia Pacific, Japan and Europe came in lower than expectations.
The company has shaken up its management, with Prada’s brand chief executive officer Gianfranco D’Attis leaving last month, replaced on a temporary basis by Prada CEO Andrea Guerra.
The company agreed to buy Versace earlier this year for about €1.25 billion ($1.4 billion), adding a brand with a very different look to its portfolio. It’s the biggest purchase in Prada’s 112-year history and it’s expected to help the company compete with bigger luxury rivals.
By Katie Linsell
Content shared from www.businessoffashion.com.
