The Italian fashion group Prada Group closed the 2021 financial year with a high profit and is optimistic about the future despite the uncertainties resulting from the war in Ukraine. This emerges from the current annual report, which the company published on Monday.
As Prada had already announced in January, citing preliminary figures, sales increased significantly in 2021. At EUR 3.37 billion, it was 38.9 percent (currency-adjusted +40.6 percent) above the level of the previous year, in which the effects of the Covid 19 pandemic had had a significant impact on business. The comparative value of the pre-crisis year 2019 was exceeded by 4.3 percent (currency-adjusted +7.8 percent).
The engine of growth was own retail, whose sales reached 2.93 billion, up 38.6 percent (currency-adjusted +40.4 percent) compared to the previous year and by 11.2 percent (currency-adjusted +15.2 percent) in comparison increased to 2019. In the wholesale business, sales fell compared to the year before last because the fashion house is now pursuing a more “selective” approach when choosing its trading partners.
Thanks to the significant increase in sales and a higher gross margin, the group was able to significantly improve its earnings: Operating profit jumped from EUR 20.1 million in the previous year to EUR 489.5 million. It was also well above the level of 2019, when it reached EUR 306.8 million. Net income attributable to shareholders was EUR 294.3 million. In 2020, a loss of 54.1 million euros was posted, in 2019 Prada had achieved a surplus of only 255.8 million euros.
The fashion house was cautiously optimistic for 2022: The start of the new financial year was “strong” and the long-term strategy is going according to plan, Prada explained. In view of the recent “outstanding growth” and the increased profitability, the company reiterated its growth plans for the coming years presented last autumn: “These results give the group confidence in being able to achieve its medium-term goals, although it is difficult to absorb the effects of the Ukraine -conflict on the global economy,” it said in a statement.
Like numerous other global companies, Prada has suspended its retail operations in Russia for the time being. The Russian market accounted for around two percent of total sales last year, the group explained.