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Virus Hit Sales Of Fashion Group, Prada

Prada
Source: reuters.com

From the world of luxury, Italian fashion group, Prada has said its sales have recovered sharply in Asia since June, after fallout from coronavirus pandemic triggered a 40 percent decline from comparable revenues globally in first half of the year.

Revenues fell to $1.1 billion at constant exchange rates in the six months to June. It was steeper than 35 percent decrease forecast by analysts.

The Milan-based Hong Kong listed luxury group posted a net operating loss of €196 million or over $200 million. Hate buyers told closures and a near absence of tourism due to COVID-19 crises. That was also larger than analyst estimates for lost of over $150 million.

The company is hopeful, the group could break even by end of this year if the recent sales recovery is confirmed .

Meanwhile, Prada said it had seen retail sales growth up by almost 60 percent in Mainland China last month and 66 percent in July and encouraging signs in other markets as movement restrictions eased. Though the trend in Europe remained double-digit negative due to the lack of tourists.

On the other hand, E-commerce sales surged 300 percent last month and this month as well. Prada had to cut a cost during the crisis. Including by renegotiating rents and cancelling or postponing marketing initiatives.

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