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Tag: Church’s

  • Prada Group opens seven stores in Xi’An China

    Prada Group opens seven stores in Xi’An China

    Prada China is boosting its retail presence by opening seven stores in the city of Xi’an.

    The Italian luxury fashion group plans three Prada stores for the SKP Mall, plus two Miu Miu boutiques and two outlets for its Church’s brand.

    Xi’an is an expanding city, with its luxury shopping scene including boutiques for brands including Chanel, Dior and Gucci as reported.

    SKP Mall is seeking to replicate its successful model in Beijing with its new location in Xi’an, which has just opened. Designed by London architecture firm Sybarite, SKP Xi’an is a 19-storey structure.

    For SKP, Prada is opening spaces for its menswear, womenswear and women’s footwear. The apparel boutiques are on the ground floor, while the shoes boutique is on the fourth floor. The stores are representative of Prada’s codes, with architectural details such as green marble, black-and-white checkered floors and mid-century Italian furniture.

    Miu Miu is also setting up on SKP’s ground level with a store for its apparel, accessories, handbags and shoes. The second Miu Miu store in SKP is a footwear-focused boutique on the fifth floor. Both spaces feature elements such as blue damask fabric and velvet sofas.

    Church’s, meanwhile, will retail men’s and women’s footwear on the second and fifth floors, respectively.

    To mark the openings, Prada is taking its Silver Line pop-up to SKP – the installation is inspired by train travel and offers shoppers products that serve purposes for different parts of the journey.

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  • Prada not looking good outside China

    Prada not looking good outside China

    Global Prada sales fell 3.8 per cent last year – but rose 4.6 per cent in greater China.

    For all of Asia, the Italian luxury fashion brand’s sales were down 1.2 per cent, but in Japan, which it treats as a separate regional market, sales slumped 14.6 per cent.

    The group’s net income for the 12 months was €248.9 million, or 8.1 per cent on net revenues.

    Prada says it has made further progress on updating Prada and Miu Miu stores to meet the brands’ new aesthetic concepts; Church’s stores are next in line for restyling.

    Meanwhile, the group says its sales plan was supported by bold action on the digital front even as physical retail remained at the centre of its omnichannel strategy. During the year the group strengthened its partnerships with major online sales outlets.

    “Moreover, the direct e-commerce channel is growing: it has been enlarged in scope and the new graphic and functional version of the Prada.com website, unveiled in China in December, will be gradually expanded to all countries this year.

    In various markets the group has been promoting “pop-up” events in shopping malls to launch products and emphasise brand identity.

    As well as the Prada, Miu Miu, Church’s and Car Shoe brands, the group also works in the eyewear and fragrance industries under licensing agreements, and has entered the food industry with the acquisition of Pasticceria Marchesi 1824.

    Prada products are sold in 70 countries through a network that includes 625 directly run stores and a network of luxury department stores, independent retailers and franchise stores.

  • Prada sales slip 10 per cent to US$3.3 billion

    Prada sales slip 10 per cent to US$3.3 billion

    Sales for luxury group Prada slipped 10.4 per cent for its fiscal year to January 31 to reach €3.1 billion (US$3.3 billion).

    The result is disappointing coming just 24 hours after LVMH reported a 15 per cent increase in sales across its multitude of brands in the latest quarter, albeit that Prada’s figures are for a full year.

    Royalties rose by 3.1 per cent to €44.8 million compared with the previous 12 months, and pre-tax earnings reached €431.2 million, or 13.5 per cent on net revenues. The group’s net income was €278.3 million.

    Prada says it was a challenging 12 months as it made concrete plans for brand development and launched an overhaul of its main processes. This transition phase coincides with the completion of a long-term plan for geographical expansion of its retail network and a bid to achieve an innovative form of integration with the digital universe.

    “The business climate was mired in uncertainty because of ongoing geopolitical tensions of
    global impact, as well as new events that have suddenly changed economic balances around the world,” says the Hong Kong-listed group.

    Meanwhile, stabilisation of some currency trends paved the way for a recovery in domestic consumption, as in China and Russia, although growth in these markets has not yet compensated for the drop in cross-border tourism.

    New designs

    Against this backdrop, the group says it took the initiative on several fronts, starting as always from the development of innovative products. Items were designed for Prada and Miu Miu in every category, particularly leather goods, including iconic handbags and special editions.

    The group also focussed on store renovation with a massive restyling program to create more intimate, exclusive environments, updated to meet new aesthetic guidelines for Prada and Miu Miu.

    During the year the group also made industrial changes under a three-year plan adopted in 2015, which aims to strengthen control over the production process by insourcing “some of the most delicate phases”. These investments are aimed to help preserve the craftsmanship at the heart of the group’s business model, while underscoring its ties to the Italian community and the sustainability of its manufacturing cycle.

    Based in Milan, Prada works with the Prada, Miu Miu, Church’s and Car Shoe brands in the design, production and distribution of luxury handbags, leather goods, footwear, apparel and accessories. The group also works in the eyewear and fragrance industries under specific licensing agreements. Its products are sold in 70 countries through a network including 620 directly run stores and select luxury department stores, independent retailers and franchise stores.

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  • Hong Kong a drag on Prada

    Hong Kong a drag on Prada

    Luxury fashion group Prada says the Asia Pacific market continued to decline during the first nine months of the new financial year.

    And Hong Kong and Macau have taken the blame – again.

    During the last three quarters, sales in the region fell 4.9 per cent at current exchange rates.

    “This is due to reductions in both local consumption and tourist flows within the region, with Hong Kong and Macau particularly affected,” Prada said in its results statement.

    But Japan helped ease the pain. Prada sets Japanese sales apart from Asia Pacific sales, reporting a 10.4 per cent increase in sales at current exchange rates and 4.6 per cent at constant exchange rates, driven largely by the rising number of Chinese tourists – many of whom in previous years would have visited Hong Kong to shop for luxury goods.

    In Europe, too, the influx of Asian tourists boosted sales, which rose 8.6 per cent at current exchange rates and 7.6 per cent at constant exchange rates. The Italian market continued to stand out among the various European countries and recorded growth rates well above the average for the area.

    On the American market sales increased at current exchange rate by 8.5 per cent, but showed a negative underlying trend, down 7.6 per cent at constant exchange rates.

    “The significant strengthening of the US dollar over the period had an adverse impact on tourism, mainly from China and South America, but, at the same time, it encouraged a shift in American consumer spending towards Europe,” Prada said.

    By brand, Prada recorded a 2.1 per cent global sales  increase which was entirely attributable to the exchange rate effect. Miu Miu has grown with revenues up at both current exchange rates (+11.8 per cent) and constant exchange rates (+1.9 per cent). Church’s has also achieved sales growth (+17.6 per cent), a positive trend also on a like-for-like base.

    The licensing business (eyewear and fragrances) performed very well, with royalties for the nine months to October 31, totalling Euro 33.5 million, a 16.2 per cent increase, in large part thanks to the launch of the first Miu Miu fragrance.

    Prada Group’s consolidated revenue for the nine months was Euro 2.583 billion. This represents a 1.2 per cent  increase at current exchange rates on the corresponding period in 2014, entirely thanks to directly operated store sales. Wholesale revenues decreased as the group continues to reduce its presence in that channel.

    Net profit was Euro 235.1 million or 9.1 per cent of net revenue.

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  • Prada Japan flourishes

    Prada Japan flourishes

    Prada Japan has posted a strong sales lift in the first half thanks to a burgeoning number of inbound tourists.

    Sales in the Japanese market grew by 12 per cent year on year current exchange rates and by five per cent on constant exchange rates. Tellingly, growth was stronger in the second quarter than in the first.

    In its half year results issued Friday, Prada reported net revenue for the six months to July 31 of euro 1.823 billion, a four per cent increase over the corresponding period in 2014. Wholesale sales fell 14 per cent, reflecting Prada’s strategy of rationalising its network of retail partners in favour of selling from its own stores.

    While Japan was a standout market, sales in Asia Pacific fell, offset by a positive rate exchange effect.

    “Hong Kong and Macau remain the main drivers affecting the performance in this geographical area,” Prada said.

    At current exchange rates, sales increased 15 per cent in both the Americas and in the Middle East.

    The European market has continued to grow with revenues up at both current exchange rates up 12 per cent and constant exchange rates up 11 per cent, thanks to a steady flow of tourists together with a recovery in consumption by domestic customers.

    By brand, Prada recorded five per cent growth at current exchange rates which is entirely attributable to the exchange rate effect, mainly because of the adverse economic situation in the Asian market.

    Miu Miu continues to grow with revenues up at both current exchange rates up 19 per cent and constant exchange rates up six per cent, showing an acceleration in the second quarter of the year. Church’s achieved sales growth of 19 per cent, with the volumes trend also remaining largely positive. Car Shoe has performed broadly in line with prior year.

    Prada Group CEO Patrizio Bertelli said sales in the first half of 2015 reflect an economic and exchange rate landscape that remains “rather volatile with the continuing weakness of important markets like Hong Kong and Macau and the uncertainty that is looming on other Asian markets”.

    “Our distribution structure, which has achieved an appropriate global presence, together with our awareness of the specific needs of the various markets, has enabled us to compensate for the drop in sales in Asia Pacific thanks to growth on markets which are currently more dynamic like Europe and Japan. We will continue to prioritise measures intended to sustain long-term growth focusing on our manufacturing tradition and innovation, as again confirmed recently by the success of our latest collections.”