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Prada reports 30% rise in Q3 profit Thursday, 6th December 2012
Photo credit: Prada
Italian fashion house Prada managed to beat quarterly profit forecasts as it revealed a 30 per cent rise in third quarter net profit to EUR 122 million.
Listed on the Hong Kong Stock Exchange, Prada on Thursday said wealthy tourists from Asia and Russia had managed to offset slower demand in the fashion house’s domestic Italian market.
"The group has continued to grow at a rate that has exceeded our expectations but great care has still been paid to cost control," Patrizio Bertelli, chief executive said.
Speaking on the long-term recession experienced in Italy and the eurozone as a whole, Prada chief financial officer Donatello Galli said he did not see a change in Italy’s economic troubles any time soon:
"This trend has not changed because the economic situation has not changed and I don't think it will change in the next few quarters," Galli said during a conference call with analysts.
Ferragamo profits surge 22% Thursday, 30th August 2012
Photo credit: Salvatore Ferragamo
Italian luxury brand Salvatore Ferragamo has bucked the trend for a declining luxury sector in Europe after reporting a 22.5 per cent rise in first half net profits to EUR 55.9 million.
Qatari royal family buys Valentino for €700m Thursday, 12th July 2012
Photo credit: Valentino campaign 2012
Iconic Italian fashion house Valentino has been acquired by the Qatari royal family for EUR 700 million.
With speculation of a Valentino deal rife over the weekend, it emerged on Thursday that Mayhoola for Investments SPC, an investment vehicle backed by a leading Qatari, had acquired the label from UK-based private equity fund Permira and Italian textile manufacturers the Marzotto Group.
The Qatari royal family, who also own Harrods department store in Knightsbridge, paid 31.5 times Valentino’s 2011 EBITDA, in a deal that will be seen by many as the luxury brand acquisition of the year.
Prada doubles Q1 profit Friday, 8th June 2012
Photo credit: Prada campaign 2012
Prada saw sales surge 6 per cent on Friday after reporting back on an exemplary first quarter.
The luxury fashion house said profit for the period doubled, outpacing revenue growth, as the brand continued to experience a strong trade in both Europe and Asian markets.
However, the group remained cautious of global economic concerns, keen to point out that it would not be exempt from an impending eurozone crisis.
"If the Greek crisis spread to Spain or Italy it would slow tourist flows. And if it affected tourists, it would impact us," Prada's vice president Carlo Mazzi told Reuters in a phone interview.
Europe was in fact Prada’s best performing market, growing 57 per cent in the three months to the end of April, with Asia in second place, increasing its growth by 47 per cent. Revenues in the US, which is also still struggling to recover from a recession, were up by more than a third for the period.
Prada directly operates a total of 402 stores, with plans to add 260 outlets to its store portfolio over the next three years, with a focus on new cities.
PPR completes Brioni acquisition Thursday, 12th January 2012
French retail conglomerate PPR announced on Wednesday that it had completed its acquisition of 100 per cent of Italian tailor Brioni.
The purchase was finalised in accordance with terms revealed on 8 November, after receiving clearance from antitrust authorities.
Brioni will now become a key player in PPR’s move into accessories and expansion in the Asian market. Based in Penne, Italy, the men’s suit designer posted 2010 sales of EUR 170 million.
Prada Q3 ‘immune’ to debt crisis Tuesday, 29th November 2011
The Italian fashion house on Tuesday reported on strong third quarter results whilst it acknowledged some of its wealthy customers may feel the pinch from the global economic downturn in the future.
Prada said it would minimise financial risks by passing up more exotic acquisition opportunities.
The company posted net profit up 75 per cent to EUR 93.6 million in the three months ending in October, thanks to sales in Asia, now its main market.
Sales of leather bags and clothing continued to increase in November, demonstrating the resilience of the luxury industry despite the widespread concern for the euro zone’s debt crisis.
"We are in a niche market, that caters to the affluent, so we have been immune so far," Deputy Chairman Carlo Mazzi told Reuters.
"We are confident we can confirm results in terms of margins for the rest of the year," Mazzi said in a phone interview after the results.
"However, we are necessarily cautious about giving triumphant predictions. If the current economic trends remain so difficult, also the wealthy will start to feel the pinch," Mazzi said.
Net revenues in the third quarter rose 33 per cent to EUR 596 million with the iconic Prada and Miu Miu brands leading growth.
Mazzi added the group would consider opening stores in markets where it is not yet present, such as Brazil, one of the world’s biggest emerging luxury markets.
Ferragamo sees double digit growth for first 9 months 2011 Wednesday, 16th November 2011
Salvatore Ferragamo reported an impressive jump in net profit for the first nine months of the year, as the company strengthened its presence in the Asia Pacific region.
Total revenues for the Italian luxury brand increased 27.6 per cent to EUR 701.3 million compared to EUR 549.8 million last year. The group attributed the growth to the surge in popularity for its “Made in Italy” image, as well as a higher, luxury positioning worldwide. All geographical areas delivered significant growth, with the exception of Japan.
The Asia Pacific region brought in a turnover of EUR 248.6 million, rising 36 per cent on the revenues for the first nine months of 2010. The growth for the period was largely thanks to the group’s retail channel, which in China recorded a growth of over 50 per cent compared to the same period in 2010. Europe also managed comparatively good growth figures, with an increase of 29.3 per cent over the first nine months of 2010.
All product categories delivered a marked increase in revenues. Footwear had an increase of 34.2 per cent, whilst handbags and leather accessories had a rise of 28.5 per cent, which represents around 74 per cent of group total turnover.
PPR announces Brioni take-over Tuesday, 8th November 2011
French retail conglomerate PPR announced on Tuesday it will take over luxury brand Brioni for an undisclosed price.
The move will strengthen the PPR’s position in the high-end menswear market as the group looks to align itself with a more consistently luxury offering.
PPR said an agreement had been reached with Brioni’s shareholders to buy 100 per cent of the share capital. The deal is expected to be finalised in early 2012, and still needs to be approved by antitrust authorities.
PPR said it will look to expand the Brioni brand into emerging markets with a wider product range. The Italian fashion house, which is famous for designing James Bond’s suits, currently operates 74 stores worldwide.
Pucci forges US expansion plans Tuesday, 20th September 2011
The historic Italian fashion house will open a new shop-in-shop at Sakes Fifth Avenue as it begins a new wave of expansion in the States.
“The U.S. market is excellent for Pucci, one of the markets that is growing the most, as it showed 20 percent gains year-to-date,” said Alessandra Carra, who joined the company in March as its new chief executive officer. “We didn’t used to have shop-in-shops in department stores, as it was a conscious decision in the past to focus on building our boutiques, but we thought that with Saks, it was the right moment to change our strategy.”
It will be something of a homecoming for the brand, since Saks was the first American department store to carry Pucci in the late Sixties.
Controlled by LVMH, Pucci operates eight stores in the US and is sold at department stores including Bergdorf Goddman, Neiman Marcus and Nordstrom. Carra confirmed the group will be looking to replicate the shop-in-shop designs in other department stores.
Sales through its own stores now account for 50 per cent of global revenues, and Carra added that Pucci doesn’t plan to change this percentage whilst mapping out a strategy to develop its wholesale division in the future. “Department stores are very important for us and a strong vehicle for growth,” she said.
Despite a general slowdown in consumer spending in the area, Carra told press the US remains “very strategic and very important for Pucci,” adding that: “Luxury is not often influenced by this factor, and the American market has picked up after a couple of difficult years, although it remains hard to forecast the future,” said Carra.
Missoni hits US Target stores today Tuesday, 13th September 2011
Target unveiled its hotly anticipated limited edition designer collection with Missoni today in New York City.
The American giant has been working with the Italian luxury designer for the past year to develop the line of 400 items.
Missoni’s trademark colourful zig-zag stripes adorn every item from appetizer plates to a four piece sectional furniture set. Most items retail at less than USD 40 and include knitwear, rain boots, bedding, luggage and even a bicycle.
Target’s executive vice president of merchandising Kathee Tesija told reporters that “the amount of buzz Missoni is creating is unprecedented for our designer partnerships.”
Target previewed the line last week with a pop-up store in Manhattan, but it shut early when stock sold out.
The collection was promoted in fashion bible Vogue, countless blogs and television advertisements. It will be sold at all 1,762 Target stores in the US and online through to 22 October.