Prada revenue up despite banning end-of-season sales
Prada reported a slight increase in revenue today boosted by its wholesale business and full price sales after the luxury retailer banned end-of-season discounting.
The designer brand posted net revenue of €1.57bn (£1.43bn), an increase of two per cent on last year, as full price sales growth offset the decision to stop seasonal markdowns.
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Prada’s wholesale sales division grew by 15 per cent, driven by e-commerce retailers.
The Italian company reported net income of €155m after the company benefited from the Patent Box tax relief scheme, which allows businesses to seek a lower tax rate on patented inventions.
Operating profit, or earnings before interest and taxes (Ebit), decreased 13 per cent to €150m.
The group’s operating profit margin has been declining every year since 2012 when it stood at 27 per cent.
Prada chief executive Patrizio Bertelli said: “Our strategic decision to stop seasonal markdowns and to rationalise the wholesale channel has been well received by the market: full price retail sales increased across the main geographies and product categories, reflecting the soundness of our choice.
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“We believe that improving consistency in pricing well reinforce the relationship with customers and enhance product value.”
He added: “We are strongly committed to driving digital technology across the business, leading to more efficient decision making, as we are aware that digital innovation is key to compete in an evolving market”.
Main image credit: Getty