According to a statement released by Prada, the Italian fashion group has reported sales in 2021 that have surpassed pre-pandemic levels. The surge in demand for luxury handbags and clothing has contributed to a 41% increase in group sales, reaching 3.364 billion euros ($3.83 billion) at constant exchange rates. This figure is not only 8% higher than sales in 2019 but also exceeded analyst consensus estimates.

Prada attributes its success to its revamp strategy, which focuses on moving the brand upmarket and increasing online sales. The company set a medium-term sales goal of 4.5 billion euros in November, demonstrating its commitment to growth. The group experienced accelerated sales in the second half of 2021, primarily driven by its retail network, which expanded by 27% compared to 2020 and by 21% compared to 2019. Notably, e-commerce also contributed significantly to this growth.

Apart from increased sales, Prada’s core profits also showed a “significant increase” in the second half of the year. This can be attributed to higher contributions from the retail channel and the implementation of a full-price policy. The family-owned fashion house has effectively utilized its capabilities and resources to differentiate itself in the market and achieve its growth objectives.

Looking ahead, Chief Executive Officer Patrizio Bertelli expressed confidence in the company’s ability to sustain its success. He highlighted that the Prada Group possesses the necessary capabilities and resources to deliver on its growth objectives. In November, Bertelli also revealed the possibility of passing on leadership to his son Lorenzo Bertelli within the next three to four years.

Overall, Prada’s impressive sales performance in 2021 demonstrates a remarkable recovery from the challenges posed by the pandemic. With strategic initiatives in place and a strong focus on expanding its online presence, Prada is well-positioned for continued growth and success in the luxury fashion market.

Useful links:
1. Prada’s statement on sales exceeding pre-pandemic levels
2. Insight into the factors driving Prada’s sales boom