Image source: Prada
Italian fashion group Prada remains upbeat about its recovery from the COVID-19 pandemic, predicting strong growth over the next few years.
In an interview with Italian newspaper Il Sole 24 Ore this week, Prada’s chief executive officer Patrizio Bertelli said he believes the Milanese luxury brand will see its revenues rise to 5 billion euros ($6.1 billion) “in a matter of four to five years,” Reuters reported.
“COVID-19 has given a strong shock to the whole system, [but] we will see a strong acceleration when it will be over,” he told the newspaper.
Earlier this month, the fashion house said it would close out 2020 with an operating profit after revenues improved during the second half of the year. Full-year results will be released in March, but Prada provided a business update in the wake of the uncertainty caused by the coronavirus outbreak.
During the first and second quarters of the year, Prada recorded a 40% decline in revenue, leading to an operating loss of 196 million euros ($240.5 million).
Despite the impact of having to close 9% of its 637-shop network, Prada said it saw “a progressive recovery in sales, culminating for the retail sales in a full recovery to 2019 levels in the month of December.”
The luxury industry is facing fallout from continued lockdowns across Europe, but Bertelli believes the sector as a whole may see some relief in March, when restrictions are expected to ease. High-end retailers have also been slow to expand their online offerings.
Fitch Ratings also predicts European retail to stabilize sometime this spring – as long as the rollout of COVID-19 vaccines continues and cases start to decline. The first quarter, however, will still be weak for many stores due to a new round of lockdown measures in some countries.
Source: Equities News