Net revenue rose 12% to 1.73 billion euros (about $2.3 billion) in the six months through July, The growth slowed from 36% for the same period last year. And the total sales missed analysts’ average estimate for 1.75 billion euros in sales.
The Asian-Pacific region remains Prada Group’s key market, with a revenue growth of nearly 19% at constant exchange rates, “thanks to a significant contribution from the Greater China area.
Prada’s Japanese business posted 16% growth. The European market, which has benefitted from Asian tourists, posted a 6.7% rise in revenue at constant exchange rates.
“We shall continue to base our long-term growth strategy on the balanced international expansion of our retail network,” CEO Patrizio Bertelli said.
The company had 491 directly-operated stores at the end of July. In the six months ended July, sales advanced 15%, excluding currency moves, while comparable store sales rose 7%.
Prada’s retail division continues to be the main driver of sales growth, with a 20% first-half gain to 1.4 billion euros, while sales in the wholesale channel fell 3%.
The drop followed “the selective strategy adopted by the group, which led to a reduction in the number of wholesale partners by more than 100,” the company said.