Prada increased its revenues from footwear by 14.0 percent to €391.4 million in the first nine months ended on Oct. 31. The product category's share of total sales slipped to 22.9 percent from 25.2 percent as the leathergoods category grew faster.
Group revenues grew by 24.9 percent to €1.730 billion over the period, up by 27.5 percent at constant currency rates. Leathergoods boosted sales by 40.9 percent to €957.9 million, ready-to-wear was up by 3.1 percent to €337.7 million, and other products rose by 60.3 percent to €19.6 million.
The turnover rose for all brands. It was up by 26.0 percent to €1.346 billion for Prada, by 25.4 percent to €297.3 million for Miu Miu, by 12.4 percent to €43.6 million for Church's, by 2.1 percent to €14.0 million for Car Shoe and by 6.5 percent to €5.5 million for other brands.
Sales rose by a double-digit pace in all markets, led by Asia-Pacific. They grew by 19.4 percent to €318.2 million in Italy, by 22.7 percent to €372.6 million in the rest of Europe, by 18.8 percent to €257.6 million in North America, by 30.7 percent to €579.3 million in the Asia-Pacific, by 12.1 percent to €168.9 million in Japan and by 25.4 percent to €9.5 million in other countries. Sales in Greater China, which are included in the Asia-Pacific figure, jumped by 42.2 percent.
Retail sales increased by 35.8 percent to €1.338 billion, lifted by higher comparable store sales and new openings. Same-store sales were up by 23.0 percent globally, but rose by 29.0 percent in Italy, by 17.0 percent in the rest of Europe, by 15.0 percent in North America and by 34.0 percent in Asia-Pacific, driven by Greater China, up by 40.0 percent.
Prada added 51 stores to its mono-brand network in the first nine months, bringing the total to 365 doors at the end of October, including 41 Church's and five Car Shoe. The group opened another five stores after the close of the quarter.
Wholesale revenues declined by 2.0 percent to €368.6 million due to the group's selective distribution policy.
The gross margin widened to 71.4 percent from 67.0 percent and the Ebitda margin to 28.1 percent from 23.8 percent. Net profit rose by 74.5 percent to €273.2 million.
Capital expenditures reached €178.1 million in the nine-month period, of which €111.0 million went to the retail network. Net debt stood at €110.1 million at the end of October and financial analysts expect the company to have a positive cash flow from next year. They also forecast that the company will finish the full year ending in January with sales of nearly €2.5 billion and a net profit nearly €400 million.