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Prada’s sales surge on rapid greater China growth

Asia has once again energised luxury fashion label Prada’s sales in the first half year.

The company has reported net revenue up 9.4 per cent in the six months to June 30 (although a lesser 3.3 per cent at current exchange rates).

However Prada Asia-Pacific sales surged 13.8 per cent at constant exchange rates, or 6.6 per cent at current rates, most of that growth coming from company-owned stores.

Prada, which is listed on the Hong Kong stock exchange, singled out a recovery of inbound tourist flows into the city from the mainland as the primary contributor to Asia’s strong performance.

Greater China sales rose 17.2 per cent at constant exchange rates, or by 9.2 per cent at current rates, to €344.4 million, while sales in Japan rose by 9.1 per cent at constant exchange rates.

Global sales totalled €1.535 billion and net profit €105.7 million, up 10.7 per cent on the same period last year.

By category, clothing sales increased by 19.5 per cent, with both both Prada and Miu Miu achieving double-digit growth at constant exchange rates. Sales of leather goods rose by 8.4 per cent at constant exchange rates.

Prada group’s namesake brand achieved a 10.1 per cent improvement in sales, while

Miu Miu made a return to positive growth across all product categories, net sales rising 8.2 per cent.

The only poor performances were the Church’s brand, where sales were down 3.9 per cent, and income from royalties, which slipped 3.2 per cent with a healthy increase in fragrance sales offset by falling eyewear demand.

“The [Church’s] decline was nearly entirely attributable to the results of the wholesale channel, which has still not recuperated from its reorganisation process,” said Prada in its earnings release.

The Marchesi 1824 patisserie chain achieved double-digit growth.

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