Prada Handbags

Prada posts record year on Asian retail boom

operating profit in 2010 ahead of an expected stock market listing in Hong Kong as early as May.

The company, which also includes the Miu Miu, Church's and Car Shoe brands, said its earnings before interest, tax, depreciation and amortisation rose 85 per cent in 2010 compared with the previous year to €535.9m. Net revenues rose to €2.05bn, up 24 per cent at constant exchange rates and beating Prada's internal targets.

Following the earthquake in Japan, analysts have suggested that Prada, like other companies, may consider delaying its stock market listing later in Hong Kong due to the ensuing economic volatility.

However, a financial source close to the discussions said the company saw no reason to delay the listing. It is expected to list about 30 per cent of the group as it seeks to tap the higher valuations being gained by companies listing in Hong Kong compared with Europe.

Prada's figures come amid a sharp rise in luxury goods sales among the largest European groups as consumers from China, but also the US, Europe and the Middle East snap up expensive handbags and shoes.

It also follows moves by other family owned Italian fashion companies to boost their financial muscle in order to compete in the international luxury goods market. While Prada is considering a stock market listing in Hong Kong, Bulgari the family owned Roman jeweller, has opted for a buy-out by LMVH, the French luxury goods group.

Revenues at Prada, which started out as a Milan leather goods company based in the Galleria Vittorio Emanuele near the city's cathedral, had benefited from a rapid expansion of its directly owned stores. The group said it had 326 directly operated stores in 70 countries, up from fewer than 300 a year ago, and intended to invest in more stores in the coming months.

Sales grew 22 per cent on a like-for-like basis at its retail network compared with a rise of 6.5 per cent at its wholesale business at constant exchange rates. Sales from Prada's retail network account for 70 per cent of its total revenues.

The Asia-Pacific region, including China, led growth at the group with sales up nearly 50 per cent. Sales in the US were up 21 per cent and in Europe 20 per cent. In Japan, which accounts for 11 per cent of Prada's business, sales were up 16.6 per cent.

Patrizio Bertelli, who, with designer Miuccia Prada, is the mastermind behind the fashion group, said the results were the best in Prada's history and "today the Prada Group can count on a strong industrial and distribution platform, capable of seizing the best opportunities in all markets".