MILAN (Reuters) - Italian fashion group Prada said on Tuesday that it would close 2020 with an operating profit despite the hit from the coronavirus crisis, after revenues and profitability improved markedly in the second half of the year.
The Milanese luxury brand said it had decided to provide the unscheduled business update, before disclosing full-year results in March, due to the extraordinary situation and uncertainty created by the COVID-19 pandemic.
The fallout from the COVID-19 crisis triggered a 40% decline in Prada’s revenues at constant currencies in the first half of the year leading to a 196 million euros operating loss ($240.5 million).
Prada said the second half of 2020, “despite being impacted by ongoing store closures averaging 9% of the network, saw a progressive recovery in sales, culminating for the retail sales in a full recovery to 2019 levels in the month of December.”
(Corrects third paragraph to clarify drop in revenues is at constant currencies)
Reporting by Claudia Cristoferi; Editing by Valentina Za and Alexander Smith
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