- Prachi Singh |
Prada S.p.A net revenues of 3.056 billion euros (3.766 billion dollars) for the year ended December 31, 2017, a 2 percent decrease at constant and 3.6 percent at current FX compared to 2016. Net income amounted to 249 million euros (306.8 million dollars), 8.1 percent of revenues against 8.2 percent in 2016. The Prada board has proposed a dividend of 7.5 euro cents per share, representing a pay-out ratio of 88 percent.
Commenting on the annual trading, Patrizio Bertelli, Prada CEO said in a statement: “I am satisfied with the progress made in 2017: in the second part of the year and in the first months of 2018 sales trends have been progressively improving; thus demonstrating the first significant results from our ongoing strategic initiatives across the group. The Prada brand has returned to growth across our key geographies.”
Prada’s sales across geographies
In 2017, Asia Pacific returned to sales growth of 1 percent at constant FX compared to the previous year. The company saw strong performance in Greater China with 8 percent sales growth at constant FX. In the US, sales were down 4 percent at constant exchange rate compared to the previous year, however, Prada said, the market registered a recovery in the latter part of the year, confirmed also into the first months of 2018.
Europe posted revenues broadly in line with 2016. Sales in Japan declined 11 percent at constant FX in 2017, while the Middle East recorded a decrease of 9 percent at constant FX.
Ready-to-wear segment witnessed an improvement of 7 percent at constant FX in 2017. Sales were positive across all brands in all the principal markets. Leather goods saw positive momentum in second part of 2017, driven by many new products and iconic product lines supported by digital advertising and social media campaigns. Footwear saw a contraction in sales.
The Prada brand ended the year in line with 2016, while the company said, the trend for Miu Miu was impacted by temporary store closures due to refurbishment programme.
The reported higher gross margins at 73.5 percent compared to 72 percent in 2016, boosted by a better quality of sales benefitting from a higher proportion of full price sales. EBITDA amounted to 588 million euros (724.7 million dollars), 19.2 percent of revenues against 20 percent in 2016 and EBIT amounted to 360 million euros (443.6 million dollars), 11.8 percent of revenues compared to 12.8 percent in 2016.