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Prada reports strong Q4 sales, swings to FY profit

By Huw Hughes

15 Mar 2022

Business

Image: Prada, Facebook

Prada has swung to a full-year net profit after experiencing strong sales growth in the second half of the year.

In the year ended December 31, the Italian fashion house made revenue of 3.366 billion euros, up 41 percent compared to 2020 and up 8 percent compared to pre-pandemic 2019 levels. That trend accelerated in the fourth quarter, with sales up 14 percent compared to Q4 2019.

Breaking it down by segment, retail sales were up 40 percent compared to 2020 and up 15 percent compared to 2019. Fourth-quarter sales were 24 percent ahead of 2019 levels.

Meanwhile, wholesale sales were up 41 percent compared to 2020 but down 29 percent compared to 2019.

Prada swings to profit

The luxury giant made a net income of 294 million euros in the year, swinging from a loss of 54 million euros a year earlier.

Meanwhile, its EBIT came in at 489 million euros, up from 20 million euros a year ago.

“The Prada Group’s start to 2022 has been strong,” CEO Patrizio Bertelli said in a statement. “Decisive actions to evolve the business and navigate the changing luxury market drove outstanding growth and increased profitability in 2021,” he said.

Based on its results, Prada said it is now confident it will meet its medium-term targets despite ongoing industry-wide uncertainty surrounding the war in Ukraine and its impact on the global economy.

PRADA
Ukraine