Europe is still recovering after the notorious economic crisis in 2008, but it did no prevent a fashion giant Prada from performing an annual turnover of 777.7 million euro, even though, it is 0.6 % less than the same time previous year.
The luxury fashion brand blames low exchange rates and third-party sales numbers. The wholesale decline of 24.7% was caused by Prada’s eagerness to re-think its strategy towards selling via their own stores. The company looks forward to the end of rationalization by the next year.
Prada’s sales index has grown 2.8 % converting into 697.8 million euro and with proportional exchange rates it would have gone up by 7.7 %. The constant instability in exchange rates has affected company’s profit, allowing it to decline down to 156.3 million euro (20.1 % of total turnover). Net profit comprised 105.3 million euro, 13.6 % of total sales that clearly demonstrates the evidence of shrinking sales numbers resulting in poorer performance compared to last year’s results. The public markets did not go silent regrading news from Prada, lowering Prada’s stock by 6.9%.