Prada is finalizing arrangements with a group of banks for a new 5-year loan to help repay the €700 million bond issued in December 2001 by Deutsche Bank, which expires on June 30. According to a report, Prada is financing the interest charges of €80 million related to the bond out of its own financial resources.
On the other hand, Prada posted a consolidated loss of €62 million for the 13-month financial year ended last Jan. 31 after extraordinary charges of €73 million related to its loss-making Jil Sander and Helmut Lang subsidiaries and provisions of €50 million for writeoffs on assets and goodwill. Prada had a net profit of €36 million in the 2003 calendar year.
Group revenues amounted to €1.46 billion for the 13-month period. They were up by 6 percent as compared to the previous 12-month period in terms of constant currencies. Prada and Miu Miu remained as the group’s core brands, generating around 85 percent of the total turnover and most of its profits, despite unfavorable exchange rates. The two brands performed particularly well in the Asia-Pacific region, where they were up by 25 percent on a constant currency basis, and in the USA, where they were up 14 percent. Revenues also increased in all other major markets, such as Japan, Italy and the rest of Europe.
In terms of product categories, sales of ready-to-wear were up by 18 percent in constant currencies and on a 12-month basis, representing 40 percent of total turnover. Another 40 percent was accounted for by leathergoods, where were up by 13 percent. Jil Sander and Helmut Lang, the designers, have both left the eponymous fashion houses, which are both being reorganized.