Leading Italian fashion group Prada’s Net income dropped 16 per cent to Euros 278.3 million in the year through January. Its wholesale channel however increased by 15 per cent to Euros 504.4 million, a significant increase on last year. Licensed business also grew by 3 per cent as both eyewear and fragrances saw positive trends, generating royalties worth Euros 45 million.
The implementation of their rationalization programme to streamline operational and management processes considerably mitigated the impact on margins of the decline in revenue.
During the year, the Group generated a strong operating cash flow of Euros 632 million (up from Euros 368 million in 2015), thanks to the efficient management of net working capital, in particular to the significant reduction in inventory levels.
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This cash flow has allowed the fashion house to fully self-finance the capital expenditure of Euros 251 million, as well as significantly improving its net financial position, which moved from a negative value at year-end 2015 (- Euros 111 million) to a positive position by 31st January 2017 of + Euros 23 million.
Prada Group, a world leader in the luxury goods sector where it operates with the Prada, Miu Miu, Church’s and Car Shoe brands in the production and distribution of luxury handbags, leather goods, footwear, apparel and accessories.
