DESPITE enjoying an increase in net profits of 1.4 per cent for the past year, Prada SpA has reported a 5 per cent drop in revenues for 2009 – largely as a result of the weakened wholesale market, particularly in the US. But, the brand reports that figures are better once wholesale is removed from the equation.
Prada’s strategy of investment in standalone stores will be strengthened by the results, which the label said “has not only allowed for a significant increase in retail sales, but has also strongly contributed to reinforce the group’s brands’ image worldwide”. The limited 5 per cent increase in revenue company-wide was not experienced by the own brand stores, which instead saw revenues grow by 14 per cent.
The company opened 35 stores in Asia and Europe in 2009; 16 Prada stores, 15 Miu Miu boutiques, three Church’s and one Car Shoe store, WWD reports. At the beginning of this year, Prada’s own label stores totalled 267 worldwide.
Despite having called off a move to the Milan Bourse, Prada is still reluctant to rule out floating the brand on the stock exchange at some point. “We are closely monitoring market conditions,” said a Prada spokesman.
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