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Prada saw its sales growth decelerate during the third quarter but the Italian luxury group said sales for the year were still solidly higher thanks to strong performances in Asia and Europe, its top markets.
After accounting for exchange rate effects, sales revenue for the first nine months came in at € 3.34 billion (US $ 3.54 billion), a 12 per cent rise. That represents a decrease, meanwhile, from the 17 per cent rise in sales it posted for the first half.
Although the company did not provide all of the third quarter’s data, it did report that revenues increased by 10 per cent year over year during that time.
“In the third quarter, Prada remained on a sound growth trajectory, driven by solid full price like-for-like sales,” chief executive Andrea Guerra said in a statement.
Regional variations in the slowdown were significant. Prada’s largest market, Asia Pacific, saw a 21 per cent increase in retail sales in the first nine months of the year, but the boost only lasted until the third quarter.
At constant exchange rates, the decline in sales growth for Europe went from 17 to 6 per cent. North America had a decline from -1 to -2 per cent.
Japan’s sales growth dropped from 49 per cent to 42 per cent. While Prada’s youth-focused label, Miu Miu, continued to expand at a nearly 50 per cent pace in the third quarter, the Prada label experienced a decline in growth from 13 per cent over the nine-month period to 5 per cent in the same quarter.
The ready-to-wear segment still showed strong growth of 25 per cent in the third quarter, but leather goods stagnated with 1 per cent growth.
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