Prada posts 93% drop in profits as Covid-19 batters sales

Prada trading update covid-19 pandemic lockdown
Prada has revealed a drop in its sales and profits
// Prada records sales and profits decline as Covid-19 impacts trading
// The pandemic has caused an average of 18% of stores to be closed during the year

Prada has revealed a drop in its sales and profits as the Covid-19 pandemic continues to hammer the luxury retail sector.

Net revenue at the luxury Italian retailer dropped 24.9 per cent to €2.4 billion (£2 billion) in the 12 months to December 31.

The pandemic has caused an average of 18 per cent of stores to be closed during the year.

READ MORE: Prada hires former LVMH diversity director as chief inclusion officer

It also reported a 93 per cent drop in operating profit to €20 million (£17.1 million) during the period.

Meanwhile, its operating losses reached €196 million (£167.7 million) in the first six months of 2020, with an operating profit of €216 million (£184.8 million) in the second half of the year.

Retail sales of €2.1 billion (£1.8 billion) for 2020 were down by 32 per cent in the first half of the year, compared with 2019, but this reduced to six per cent in the second half, representing an 18 per cent drop over the full year.

Online sales increased by 217 per cent compared with the previous year, as consumers shifted to online shopping.

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