Prada beats profit expectations in H1

MILAN (AFP) – Italian luxury label Prada posted on Thursday a first-half (H1) profit that was above analysts’ expectations, while indicating that its sales recovery should continue.

Net profit for the first half of 2021 rose to EUR97 million (USD115 million), from a loss of EUR180 million a year earlier at the height of the coronavirus pandemic.

Analysts, on average, were expecting net profit of EUR78 million, according to financial information provider Factset Estimates.

Sales leapt by 60 per cent to EUR1.5 billion in the half, again ahead of the analysts’ consensus of EUR1.42 billion.

Despite 17 per cent of Prada’s stores remaining closed in the first half of the year due to ongoing COVID-19 restrictions, retail sales reached EUR1.28 billion, surpassing the pre-pandemic level with an eight-per-cent increase over the same period in 2019.

The haute couture house posted a core operating profit (Ebit) of EUR166 million, which was better than expected as well, and better than the EUR150-million result a year earlier.

Prada chief executive Patrizio Bertelli said the group had managed to raise its profit “despite a still uncertain environment.

“The sales momentum will stay strong in the second half of the year,” he added in a statement, driven by growth in Asia.

For 2020 as a whole, the label posted a net loss of EUR54 million.

A member of security stands at the door of a Prada store in Mayfair, London. PHOTO: AP