Prada says sales posted an over 60% growth in China since March
- Prada says sales posted an over 60% growth in China since March.
- The fashion house says its global sales came in 40% lower in H1.
- The Italian company's sales in June were up 60% in China.
CEO Patrizio Bertelli of Prada (HKG: 1913) said on Friday that sales had recovered sharply in China since March when its stores started to reopen for the public. Thanks to the pent-up demand, the CEO added, sales in China are now significantly higher on a year over year basis.
Shares of the company jumped about 3% in premarket trading on Friday. But it lost the entire gain on market open as the stock tumbled just under 5% in the next few hours. Prada is now trading at £3.16 per share that translates to about 60% recovery since March when the Coronavirus pandemic weighed on its sales. Here’s what you should know about stock market volatility.
Prada’s global sales came in 40% lower in H1
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According to the experts, the fashion industry at large is likely to see an up to 35% decline in sales this year. A strong rebound in the largest Asian economy where COVID-19 first emerged in the final quarter of 2019, as per luxury groups, will help partially offset this decline.
Since March, as per Bertelli, Prada’s sales in China had posted an over 60% growth so far. The CEO also expressed confidence on Friday that the demand will remain strong through the rest of the year. In separate news from the U.S., Tiffany & Co received regulatory approval from Mexico and Japan for troubled LVMH deal on Friday.
On 25th August that marked China Valentine’s Day this year, sales printed a record-high, as per the Italian luxury fashion house. Prada also highlighted on Friday that its global sales in the first half came in 40% lower on constant exchange rates.
Prada’s sales in June were up 60% in China
On the contrary, its retail sales in June registered a 60% growth in China while sales were up 66% in July. In the six months that concluded in June, Prada’s total global sales saw a massive 44% contribution from the Asia Pacific region.
According to the American consultancy, Bain & Company, Chinese shoppers accounted for 37% of total luxury goods sales across the globe in 2019. The bulk of these were shoppers that were travelling abroad.
At the time of writing, Prada is valued at £8.08 billion and has a price to earnings ratio of 34.36.