Prada: in the red in 2020, but hopes for recovery in 2021

(CercleFinance.com) - At end-2020, the Italian luxury goods group Prada's sales reached 2.
42 billion euros, down 24% at constant exchange rates compared to the previous financial year, weighed on by the fall in retail sales (-18% at constant exchange rates) and wholesale sales (-49%).

However, the pandemic had the merit of accelerating the group's digital business, which saw its online sales leap over 200% in 2020.

While 2020 EBIT came in at a mere 20 million euros, a far cry from 306.7 million euros in 2019, Prada points out that EBIT reached 216 million euros in H2 2020, proof that the group was mainly impacted by the pandemic in H1.

Likewise, the group recorded a net loss of 54 million euros in 2020 (compared to a profit of 255.7 million euros a year before), despite making a profit of 126 million euros in H2 2020.

The results provide the group with confidence to face the forthcoming rebound, as soon as the most critical phase of the pandemic ends, it said.


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