For the six months ended July 31, the parent of Prada and Miu Miu reported a net profit of 308 million euros (about $411 million) compared with a profit of 286.4 million euros a year earlier. Analysts’ average estimate though was for 321.3 million euros.
Earnings before interest, taxes, depreciation and amortization rose 17% to 551.1 million euros, widening as a percentage of sales as Prada adjusted its product mix and increased prices.
Net sales in the first half slowed to a third of the rate they were in the same quarter last year, but were still up 11.6% to 1.73 billion euros.
Prada, which has 491 directly-operated stores, plans to add another 80 this year. Comparable store sales rose 7% and are expected to continue that same growth in the second half.
On a conference call with analysts, Donatello Galli, chief financial officer, blamed the earnings miss on the euro’s strength against the dollar and yen.
“The currency’s appreciation against the yen and the dollar may be possibly not fully considered in some of the forecasts that we have seen coming from the market at the moment,” Galli said.
August figures were “fairly good” despite some slowdown in some parts of Europe and the Middle East as the situation in Syria hurts tourist business, Galli said.