Prada FY 2013 preliminary sales up 9 percent

REPORT_ The Prada Group recorded sales of 3,586 million euros (4,889 million dollars) in the financial year ended January 31, 2014, a

9 percent increase on financial year 2012. At constant exchange rates, sales grew by 13 percent.

Sales by directly operated stores totaled 2,996 million euros (4,084 million dollars) with a 12 percent increase on the previous financial year, over 18 percent at constant exchange rates. The growth was owing to newly opened stores and to same store sales growth of 7 percent, which remained constant in all four quarters. Meanwhile, wholesale channel sales decreased by 7 percent, below 6 percent at constant exchange rates.

The Milan-based company saw strong growth in all markets, with Asia Pacific achieving progress in 2013 with growth of 11 percent, over 14 percent at constant exchange rates. Greater China made a fundamental contribution to growth in this area with sales for the year over 15 percent at constant exchange rates. The American market again performed well in the fourth quarter and achieved 11 percent growth for the year as a whole. Prada spa grew by 36 percent at constant exchange rates. The European market witnessed sales growth of 5 percent; as in the United States, the growth was over 11 percent at constant exchange rates, while wholesale channel sales were down on the previous financial year.

Japan continues its expansionary phase and revenues grew by 24 percent at constant exchange rates, though the ongoing weakening of the Yen meant that Euro equivalent revenues were broadly in line with 2012. The contribution made by the Middle East to group sales grew strongly.

The Prada brand achieved sales growth of over 11 percent, up 16 percent at constant exchange rates, especially in the retail channel where it recorded one of the highest growth rates in the sector. Miu Miu also achieved sales growth of over 1 percent, up 6 percent at constant exchange rates. The Church’s also recorded a positive trend in 2013 with over 3 percent sales growth at constant exchange rates while Car Shoe sales were down because of the decrease in the wholesale channel. During the year, in line with its strategy, the group continued to expand the retail network opening 79 stores and reaching a total of 540 Directly Operated Stores at the end of January 2014; this total included 330 Prada DOS, 150 Miu Miu, 52 Church’s and 8 Car Shoe.

Commenting on the progress, Patrizio Bertelli, Chief Executive Officer of Prada Spa said, “The 2013 financial year was the fourth consecutive year of strong growth. Against an unfavorable background of Prada spa exchange rate volatility and the ongoing negative economic situation in Europe, we have maintained one of the highest rates of growth in the sector and have continued to pursue our objectives of retail growth. Moreover, in Italy, we launched a program of investment to improve our production structure and train our human resources with the aim of achieving constant improvement of quality and growth of industrial culture. The investments made, together with important marketing initiatives in support of the image of our brands, enable us to look forward with confidence to further progress in 2014.”

Full results regarding performance in the 2013 financial year will be published following approval by the Board of Directors at the meeting provisionally scheduled for April 2, 2014.