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Markets News

Prada flags recovery in Asia after virus hits H1 sales

MILAN, July 29 (Reuters) - Italian fashion group Prada said on Wednesday sales had recovered sharply in Asia since June after the fallout from the coronavirus pandemic triggered a 40% decline for comparable revenues in the first half of the year.

The revenue fall to 938 million euros ($1.1 billion) at constant exchange rates in the six months to June was steeper than a 35% decrease forecast by analysts, according to Smart Estimates provided by Refinitiv.

The Milan-based, Hong Kong-listed luxury group posted a net loss of 180 million euros, hit by store closures and a near-absence of tourism due to the COVID-19 crisis.

Prada said it had seen double-digit sales growth in Asia since last month, and encouraging signs in other markets as movement restrictions eased. E-commerce delivered sales growth of 100% or more during and after the lockdowns, it said.

In a statement, Chief Executive Patrizio Bertelli said the group was confident that sales would return to growth in the second half of the year.

$1 = 0.8524 euros Reporting by Claudia Cristoferi, editing by Silvia Aloisi

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