Prada SpA on Wednesday reported 2019 net profits of 256 million euros ($276 million), lifted by the Patent Box tax benefit and up 24.5% compared with 205 million euros ($221 million) in 2018.
In the 12 months ended Dec. 31, revenues at the Italian luxury house totaled 3.22 billion euros, up 2.7% compared with 3.14 billion euros in the same period a year earlier. Retail sales grew 4.1% to 2.63 billion euros.
Operating profit was down 5.3% to 307 million euros.
Prada CEO Patrizio Bertelli said, “2019 has been a year of strong progress. The combination of investment and operational initiatives implemented over the past few years are now clearly translating into brand heat and sales. We are sure that our commitment to guarantee outstanding quality standards as well as strengthening brand desirability has been the right choice to support profitable and sustainable long-term growth.
“The start of 2020 has been very buoyant for the Prada Group; the coronavirus outbreak has interrupted our growth trajectory. This is a huge and unprecedented event that will draw deeply on our sense of responsibility. Our full concern and support go to the people that are facing these tough times. The safety and the well-being of our colleagues as well as of our customers all over the world are of the greatest importance to us and we will do everything we can to help overcome this crisis together. Although it is difficult to forecast the evolution of the epidemic, we are expecting a negative impact on this year’s results, and we are implementing a comprehensive contingency plan to mitigate it, relying on our flexible supply chain and lean organization. The soundness of our financial structure gives us the confidence to overcome this exceptional moment and to be ready to capture the recovery when it arises.”
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This story originally appeared on WWD.