Prada sales up in Asian market boom

ITALIAN fashion house Prada posted a 26 per cent rise in first-quarter revenue yesterday – boosted by a storming performance in Asia.

Prada, which also owns the Miu Miu label and Church’s shoes, said revenue in the quarter to the end of April grew above the group’s expectations to €366m (£314m).

A 36 per cent jump in retail sales underpinned the rise.

Prada’s strategy of developing a direct distribution channel had paid off, the company said in a statement.

Sales were up 62 per cent in Asia, 33 per cent in the US and 18 per cent in Europe.

Like-for-like overall sales climbed 21 per cent in the first quarter of its financial year.

Prada, which earlier this year denied it was in talks to sell a stake to France’s Compagnie Financiere Richemont, said earnings before interest, taxes, depreciation and amortization (EBITDA) rose almost sixfold to €64m. The company has more than 250 outlets worldwide.

Miuccia Prada is the head designer as seen as the talent that is driving the company forward.

French luxury group Hermes posted the biggest surge in first-quarter sales of all European luxury goods companies. Meanwhile Richemont also reported a reversal in fortunes.

Those were seen as an indication that luxury spending was on its way back after the financial crisis which hit the pockets of consumers across the world.