Luxury goods retailer Prada experienced a dip in sales across all of its regions last year, with fewer tourists visiting its global flagship stores dragging growth.
However, the Italian brand – which trades in the UK with a few flagship stores and concessions – said sales had improved in the last months of 2016, hinting at a return to growth for the struggling luxury sector.
In the UK, the post-Brexit fall in the sterling enabled Prada to reverse the decline of the first six months to end the year with strong growth.
For its financial year ending January 31, the Milan-based company recorded a nine per cent drop in revenues from ”Žâ‚¬3.5 billion (£3 billion) to ”Žâ‚¬3.1 billion (£2.6 billion).
Prada‘s sales fell across all regions with the biggest coming from Japan, where it plummeted by 13 per cent after five years of growth.
In the US and overall in Europe, revenue also fell by 12 per cent and five per cent respectively, thanks to a reduction in tourists.
Like the UK, France and Russia also performed well in the European market, with the latter recording double-digit growth.
“We implemented a profound phase of business process rationalisation – still under way – and identified important strategies to secure the group’s future growth,” Prada chief executive Patrizio Bertelli said.
“This included revising our digital strategy with the creation of a highly skilled team with professional experience from the digital technology and new media industries.
“In the meantime, we are strengthening the retail management structure with the aim of integrating online channels with traditional channels in a truly innovative dimension.”