CORONAVIRUS: PRADA REVENUE SUFFERED 40% DECLINE

The luxury house brought in less than a billion euros thus far in 2020.

By Balthazar Malevolent

CORONAVIRUS: PRADA REVENUE SUFFERED 40% DECLINE

With Kering and LVMH announcing abysmal financial results, it follows that the coronavirus pandemic would strike their fellow luxury groups hard. Indeed, Prada Group reported a remarkable loss due to closures of the stores, declining travel and decreased wholesale, reporting a 40 percent fall in net sales, down to EUR 938 million (around US$ 1.1 billion).

Prada Group.

Unlike its rivals, Prada Group — which owns Prada, Miu Miu, and Church — fosters resilience during these difficult times, emphasizing diminished retail and buoyant e-commerce, which witnessed a 32 percent decline and "triple-digit sales growth during and after the lockdowns," respectively. The statement by the Company also highlighted its "disciplined approach" to cost control and efficient supply chain management as key factors to reduce losses, realized through lease renegotiation and a tightened marketing budget.

In response to the outbreak, Prada closed 70 percent of its outlets, slicing wholesale by a whopping 71 percent, a drastic step from which the brand is only just beginning to recover. Unsurprisingly, the "whole Asia Pacific zone" has lifted Prada's fortunes as the country loosens its lockdowns, reportedly enjoying double-digit revenue growth in the month of June, the final month of the first half of 2020. Europe and Japan, too, are seeing a bounceback.

"I'm incredibly proud of the dedication and sense of duty displayed by all our people in these circumstances," said Patrizio Bertelli, CEO of Prada Group, in a statement. "The first half of 2020 saw a temporary interruption of our growth trajectory which, in a situation of progressive pandemic management, we are sure will slowly resume as of the second half of 2020, when our store network will be completely operational again."

In other news, Adidas and Yohji Yamamoto have reunited for the second "YY EXCLUSIVE" launch following the debut of the sub-label last summer. The sub-label is distinct from Y-3, which mainly sees Yamamoto upgrading adidas classics, which is true for the latest collection of footwear and apparel.

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