THE WHAT? Prada has reported a H1 revenues leap of 66 percent at constant exchange rates to €1.5 billion euros ($1.78 billion), joining its luxury peers in seeing a return to growth following pandemic downturns. 

THE DETAILS While it falls just short of of its 2019 pre-pandemic results, the result beat analyst expectations of €1.43 billion. 

Sales from Prada stores reached €1.281 billion, an 8 percent rise from the comparable period from two years ago, with both Asia and America beating 2019 levels.

Revenues in Europe were 29 percent lower than the comparable period in 2019, with stores having been shuttered longer, while revenues in Japan suffered from strict restrictions ahead of the Olympic games.

The Middle East continued to grow, driven by local consumption and a slight increase in the inflow of tourists. 

As consumers shifted to e-commerce, online sales grew in triple digits, rising 100 percent or more than the previous year, with the sector now accounting for 7 percent of retail revenues. 

THE WHY? Chief Executive Officer Patrizio Bertelli said, “The commitment to our brands and stronger ties with our customers have delivered robust growth in sales across markets and product categories. We improved gross margin as well as the Group’s profitability, despite the uncertain environment. The sales momentum will stay strong in the second half of the year. Our brands have plenty of potential and we will unlock it over the medium term. I look forward to updating the market on this and other topics at a Capital Markets Day that will take place in the autumn.”

Looking forward, Bertelli stated that the sales momentum would continue into the second half of the year.