Prada profits jump 74 pc on high Asia sales

ITALIAN fashion house Prada posted a 74 per cent rise in first-half profit yesterday, beating the forecast in its June listing prospectus, and said it would stick to its plan for opening new stores.

Milan-based Prada, a maker of luxury bags and Miu Miu dresses, said group net profit totalled €180m (£156.6m) in the six months to the end of July, compared with a forecast for €151m in its listing prospectus.

Prada, which listed in Hong Kong in June, said turnover rose 21 per cent to €1.134bn.

The firm credited soaring sales in Asia, and China in particular, for the strong performance.

“We are continuing exactly what we planned in terms of investments, particularly new openings of shops,” deputy chairman Carlo Mazzi said.

“We are in the luxury goods markets and not in the mid-market. Usually this segment of the market is less hit by the crisis,” he added.

Its stock ended down 3.7 per cent at HK$41.30 yesterday, compared with a 2.8 per cent fall by the Hang Seng Index.

Prada and shareholders Prada Holding and Intesa Sanpaolo sold 423m shares in June’s offering, raising HK$16.7bn (£1.37bn).