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Profits rocket at Prada

Luxury Italian fashion group Prada saw net income rocket by almost 60% in the first six months of the year as retail sales soared.

Net income rose to €286.4m (£228.3m) in the six months to July 31 on the back of net revenues climbing 36% to €1.5bn (£1.2bn). EBITDA soared 49% to €469.4m (£374.2m).

The growth in turnover was driven by the group’s retail channel, which achieved a 47% growth helped by new store openings. Retail sales now make up 80.7% of total sales across the company. Like-for-like retail sales also grew by 19%.

Prada’s wholesale arm reported a 4% growth with revenues rising to €294.7m (£234.9m).

The group’s brands all performed well, especially Prada, which enjoyed 40% growth. Strong increases were also achieved by Miu Miu with a 23% rise in sales.

Growth was seen across all markets, with Europe posting a 31% increase for the six month period. Sales in Asia Pacific rose 44%, with Japan seeing 34% growth, while the Americas saw sales jump 30%.

During the period Prada opened 28 new stores including shops in new markets such as Morocco, Brazil, Mexico and Ukraine.

Leather goods recorded the highest rate of growth; rising 52% while clothing and footwear recorded increases of 17% and 14%, respectively.

Patrizio Bertelli, chief executive of Prada Spa, said: “The Prada Group has again achieved extremely satisfying results in the first six months of 2012. Our growth rates are among the highest in the sector and have been achieved in a very tough economic environment. The market continues to reward Prada’s unwavering commitment to style and dedication to quality.”

He added: “We are aware of the negative market trend but, counting on the strength of our brands and our ability to pursue our objectives, we look forward with confidence to the near future without altering our strategy based on achieving our long-term growth targets.”

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