Prada has revealed that a strategic decision to stop seasonal markdowns has led to a significant boost in profits at the Italian luxury house.
Net profit rose 56.5% in the first half to €155 million while operating profit hit €152 million. Revenues were up 2% at €1.6 billion, a performance that was in line with expectations.
Prada CEO Patrizio Bertelli said in statement: “Our strategic decision to stop seasonal markdowns and to rationalize the wholesale channel has been well received by the market,” he said.
“Full price retail sales increased across the main geographies and product categories. We believe that improving consistency in pricing will reinforce the relationship with customers and enhance product value,” he added.
The in-store retail channel declined 3% as a result of the scrapping of markdowns, while wholesale was up 14% driven by online.
Sales in both Europe and the Americas were up 6% while Asia was down 4% as sales were hit by protests in Hong Kong.
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