Prada sees strong sales growth in the second half of the year. Total revenues of the Italian fashion group jumped by 66 per cent at constant exchange rates. The global health emergency last year interrupted two years of sales recovery at Prada, the result of a revamp plan focused on boosting e-commerce and sticking to full-price sales. Like the rest of the luxury sector, the group started to see the first signs of a rebound last summer after the key Chinese market eased anti-contagion restrictions.
Sales from Prada’s store network were eight per cent above their level in the first six months in 2019, even through a sixth of shops were still closed during that period. There was a strong acceleration in the second quarter. Asia and the Americas exceeded pre-pandemic levels, while revenues in Europe - where shops remained closed longer - were still 29 per cent lower than two years ago. Once stores re-opened, sales partially recovered. Robust demand from local customers partially offset the lack of tourists in the region. E-commerce grew by 100 per cent or more compared with a year earlier. Online sales now accounts for seven per cent of retail revenues.
The industry is now steaming ahead as lockdowns have been relaxed around the world.