In case you missed it, Michael Kors Holdings Ltd.’s better-than-expected revenues may indicate that there’s hope yet for the slipping handbag category, while Coach Inc. got a substantial earnings jolt from recently acquired Stuart Weitzman.
Meanwhile, market watchers say Yoox S.p.A. is on a path to accelerated growth — and it hasn’t even tapped into the monetary potential of its much-heralded merger with luxury e-tailer Net-A-Porter. Yoox reported double-digit percentage growth in both earnings and revenues but had a consolidated net loss of 1.1 million euros or $1.2 million in Q2.
Closing out the week are financial statements from Prada Group and Tod’s S.p.A. Read on for performance highlights.
Prada Group — whose brands include Prada, Miu Miu, Church’s and Car Shoe — released preliminary sales figures for the first half of 2015. Revenues rose 4 percent year-over-year to 1.8 billion euros, or $2.02 billion, in the first half. Those gains were driven by strong retail channel performance, up 8 percent, but dragged down by 14 percent declines in wholesale. (Based on current exchange rates.)
Prada S.p.A.’s CEO Patrizio Bertelli said slipping sales — particularly in the Asia Pacific markets — 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 in markets which are currently more dynamic like Europe and Japan,” the CEO said in a release. “We will continue to prioritize 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.”
Total retail sales in the first half were 1.5 billion euros, or $1.72 billion. Sales in North America and the Middle East improved 15 percent, at current exchange rates, while Japan gained 12 percent at current exchange rates and 5 percent at constant exchange rates.
The European market’s revenues were up 12 percent at current exchange rates and 11 percent at constant exchange rates.
The Prada brand recorded 5 percent growth at current exchange rates; Miu Miu’s revenues grew 19 percent at current exchange rates and 6 percent at constant exchange rates.
Tod’s reported accelerated revenue growth bolstered by currency tailwinds and gains in Europe and the Americas in the first half (Jan. 1-June 30, 2015). Net income however declined due to a “significantly higher tax rate” in the first half of 2015 relative to the prior year’s tax rate, the company said.
Footwear was the strongest category for the company whose brands include Tod’s, Hogan, Fay and Roger Vivier. Footwear revenues totaled 410.7 million euros, or $451.8 million, up 10 percent year-over-year.
Consolidated net sales were 515.3 million euros, or $566.8 million, up 7.9 percent from H1 2014. A significant boost came in Q2, the company said, where sales improved 15 percent compared to a gain of 1.5 percent in Q1. At constant currency, sales would have been 486.1 million euros, or $534.7 million, up 1.8 percent year-over-year.
Net income totaled 50.4 million euros, or $55.4 million, an 11 percent year-over-year decline.