 Wys³any: Pi± 5:35, 13 Gru 2013 Temat postu: Prada reassures against over luxury slowdown |
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| Prada reassures against over luxury slowdown
HONG KONGItalian fashion house Prada SpA dismissed talk of a sharp slowdown in spending on luxury goods,[url=http://www.sport.fr/sponsoring/uggpascher.html]ugg hommes[/url], posting a 59.5 per cent jump in net profit and saying its sales in the past two months were on track with expectations. "I think we must stay calm and be less hysterical. I don't see such a dramatic market," said Patrizio Bertelli, chief executive of the maker of minimalist dresses which competes with the likes of Louis Vuitton and PPR SA's Gucci. His comments on an analyst conference call come after Britain's Burberry Group Plc said on Sept. 11 its sales growth in China was far slower than expected, spooking luxury investors and raising concerns that the entire sector was in danger of stumbling. China's luxury market, on which global luxury powerhouses have become increasingly dependant, has been hit by weaker demand than expected due to slowing growth and a crackdown by Beijing on conspicuous consumption. But Milanbased Prada, also popular for its coloured Miu Miu dresses and leather handbags, said it expected "good doubledigit growth" in 2012 at shops open more than a year. "Today, looking at numbers in August and September, we are convinced that we will meet the targets indicated in our budget," Bertelli said without giving details. Asked about Burberry, Bertelli declined to comment on its competitor, but said Prada benefited from a "flexible" offer which was responsive to conditions in its different markets. "We think that considering all markets at the same level is wrong. We must accept markets' diversity and adapt to different needs and traditions," the CEO said, adding Prada was reducing inventories to keep costs under control. Bertelli said he expected Prada's earnings before interest, tax, depreciation and amortization (EBITDA) to improve this year. He said he would raise prices only to adjust for currency trends. Firsthalf EBITDA rose 49 per cent to 469.4 million euros, or 30 per cent of consolidated net revenue. The company's own brand and Miu Miu have been the main drivers of growth, posting revenue up 40.4 per cent and 23.7 per cent respectively. The Asia Pacific market delivered the highest growth rate, accounting for more than a third of Prada's total net revenue. Greater China sales rose 50.2 perc ent to 334.6 million euros. Analysts said Prada's leather goods sales tend to be more resilient than apparel during an economic downturn and expect the company to outpace its competitors due to its strong positioning in handbags and its smaller store network. Prada said it would continue to focus on expanding its own retail network, which it sees as essential to long term growth, even if market conditions remain challenging. Prada, which reported revenue of 1.55 billion euros for the first half of the year on Aug. 6, has opened 28 new stores while closing two, taking the total number of directlyoperated stores to 414 at the end of July. Listed in Hong Kong, Prada's shares have gained 71 per cent so far this year, substantially outperforming the benchmark Hang Seng Index which is up 12 per cent. The company's earnings were released after the Hong Kong market close. |
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