Prada fashions 2020 operating profit from second half rebound
MILAN (Reuters) - Italian fashion group Prada said on Tuesday that it would close 2020 with an operating profit after a strong recovery from a first half coronavirus-driven sales slump.
MILAN (Reuters) - Italian fashion group Prada said on Tuesday that it would close 2020 with an operating profit after a strong recovery from a first half coronavirus -driven sales slump.
The Milanese luxury brand said it had decided to provide the unscheduled business update before disclosing full-year results in March in order to avoid uncertainty over its performance due to the COVID-19 pandemic.
The fallout from the COVID-19 crisis had triggered a 40% decline in Prada's revenues in the first half of the year, leading to a 196 million euros operating loss ($241 million).
That compared with a 150 million euro operating profit in the six months through June 2019.
Prada said sales had improved in the second half of 2020 despite store closures corresponding on average to 9% of the network, "culminating for the retail sales in a full recovery to 2019 levels in the month of December".
In the July-to-December period retail sales, which account for around 90% of Prada's total, posted a 6% decline at constant exchange rates.
"This seems a good feat, and probably better than what most other groups will report, on the back of a strong consumer driven recovery for the Milanese brand", Bernstein analyst Luca Solca said of Prada's update.
Europe and Japan suffered due to the lack of tourist flows, Prada said, with a positive performance in the Americas, the Middle East, Russia and above all Asia, where China grew by 52%.
Wholesale sales declined as Prada pressed on with a strategy, which it began in 2019, to shrink its network so as to have uniform prices for its goods.
"I am very satisfied with how we have faced the serious difficulties of the year just ended," Chief Executive Patrizio Bertelli said in a statement.
($1 = 0.8150 euros)
(Reporting by Claudia Cristoferi; Editing by Valentina Za and Alexander Smith)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Elena Rodriguez and Belén Carreño MADRID (Reuters) - Authorities struggled to clear ice and fallen trees from the streets of Madrid on Tuesday and temperatures in parts of Spain hit record lows after a snowstorm wrought havoc across the country at the weekend. Early jubilation at the historic snowfall, which saw skiers gliding through the streets and mass snowball fights, gave way to frustration as most public transport remained stalled and pedestrians avoided the icy streets. "You in Madrid are not ready for this," said Demetrio, a Ukrainian living in Madrid, who did not give his last name.
By Steve Holland and Andrea Shalal JOINT BASE ANDREWS, Md./WASHINGTON (Reuters) - U.S. President Donald Trump, facing impeachment on a charge of "incitement of insurrection" on Tuesday disavowed responsibility for his supporters' violent invasion of the U.S. Capitol last week and said his remarks before the siege were appropriate.
PARIS (Reuters) - French carmaker Renault and U.S. hydrogen specialist Plug Power have joined forces to develop hydrogen-powered light commercial vehicles, they said on Tuesday. The companies have signed a memorandum of understanding to launch a France-based 50-50 joint venture by the end of the first half of 2021, targeting more than 30% share of the fuel cell-powered light commercial vehicle market in Europe, their joint statement said