Prada SpA sales jumped as the Italian fashion group benefited from a strong appetite for its brushed leather loafers and slingback pumps.
(Bloomberg) — Prada SpA sales jumped as the Italian fashion group benefited from a strong appetite for its brushed leather loafers and slingback pumps.
Net revenue in 2022 rose to €4.2 billion ($4.44 billion), up 21% at constant exchange rates, the group said in a statement Thursday. Analysts had expected revenue of €4.01 billion. Demand in Europe was particularly strong. Adjusted earnings before interest and taxes soared by more than two-thirds.
The shares gained as much as 4.4% Friday morning in Hong Kong, to their highest intraday level since Nov. 24, 2021. The benchmark Hang Seng Index fell as much as 2.7%.
Prada in the fourth quarter was the “hottest” name on the Lyst index, which tracks the most searched-for brands and products on the shopping app. Miu Miu, another group brand, was fourth for the period. Prada’s brushed leather pumps, which sell for almost €900, were among the most searched products during the period, Lyst said.
The fashion house recently reorganized its governance, with Miuccia Prada, granddaughter of the label’s founder, and Patrizio Bertelli stepping down as co-CEOs, and Andrea Guerra taking on the leadership role.
Prada and Bertelli are still involved in running the group as executive directors. Prada herself is also designer for the namesake label along with Raf Simons. She’s also creative director of Miu Miu, which this week debuted its autumn/winter ready-to-wear collection in Paris, featuring a runway appearance by Emma Corrin, known for playing Princess Diana in The Crown.
“We performed well across all product categories and geographies, more than offsetting weakness in China due to Covid-19,” Bertelli said in the statement. Guerra said he expects growth this year to remain “solid and above market average,” adding during a call with analysts that 2023 started well and that the company had an “excellent” Chinese New Year.
The company derives a third of its revenue from the Asia-Pacific region and about the same proportion from Europe. One of Guerra’s main priorities this year will be to boost store productivity, he said.
The release from Hong Kong-listed Prada follows a mixed set of results from other luxury companies, with Hermes International seeing strong demand in China in the last quarter while Kering SA suffered from lackluster demand for its biggest Gucci label.
Read more: With Gucci and Balenciaga Struggling, Kering Aims for a Reset
Prada in October launched a line of fine jewelry made from certified recycled gold, as luxury players branch out into a product area which is helping boost the perception of exclusivity in eyes of the consumers.
Prada shares have gained 23% so far this year. Group Chief Financial Officer Andrea Bonini said Thursday he had “no news” on a plan to have a secondary listing in Milan. The Italian company will now publish quarterly trading updates, with the first quarterly revenue numbers coming out on May 11.
–With assistance from Daniela Wei.
(Updates stock price in third paragraph)
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