"In the first six months of 2022, Prada Group delivered growth in both revenue and profitability, continuing to invest with a long-term perspective in creativity, industrial know-how and product innovation (…). Thanks to our global presence and geographical distribution of sales, we have more than compensated the impact of the various lockdowns in Mainland China and sanctions on Russia, where we continue to support our people despite store closures. Although current trading is strong, the global political and economic outlook is very uncertain and provides ground for caution. Our position of strength gives us confidence to execute against our strategy to fully exploit our brands’ potential. We are confident that we will achieve our medium-term financial and operational targets", commented Patrizio Bertelli, Prada Group Chief Executive Officer.

First Half Results

In the first half of 2022, Prada's net sales increased by 22%, reaching 1.90 billion euros, on a comparable basis to the same period of last year.

Retail channel sales, which account for 90% of total sales, grew by 26% in these six months, totalling 1.68 billion euros, as compared to the first half of 2021, "fuelled by the offer of new and iconic products with a clear identity, driving a very good performance across all product categories". The wholesale channel's revenue decreased by 3% to 194 million euros.

The group's sales in Asia-Pacific declined by 7%, amounting to 590 million euros, due to the lockdowns in Mainland China from mid-March, offset by the performance in Korea and Southeast Asia. Europe recorded a "sharp" growth of 89%, totalling 486 million euros, driven by domestic sales and tourism return. Sales in the Americas' region resulted in an "outstanding" 360 million euros, up by 41% and triple-digit growth on pre-pandemic levels. Performance in Japan accelerated this semester, with a growth of 28% that generated 161 million euros and sales in the Middle East increased by 24%, totalling 80 million euros.

The group pointed out that the enriched product offer and operational improvements led to a gross margin of 77.7% and EBIT adjusted margin of 17.4%, on a comparable basis to a 74.3% gross margin and an 11.1% EBIT adjusted margin in the same period of 2021.

Net income in the first half of 2022 totalled 188 million euros, as compared with net income of 97 million euros in the similar period of the prior year.

Prada noted that "despite the highly uncertain global macroeconomic environment", the results of the first semester "accelerated the Group's trajectory towards the midterm targets".