Prada sees shares rocket as it becomes latest fashion house to benefit from post-pandemic luxury boom
Prada saw its shares rocket yesterday as it became the latest fashion house to benefit from the post-pandemic luxury boom.
Sales of its handbags, shoes and perfumes increased by 8 per cent to £1.1billion in the first six months of the year, compared with the same period in 2019.
The brand boosted earnings to £141m, up from £128m two years ago, allowing it to post profits of £82.7m.
Sitting pretty: Sales of Prada’s handbags, shoes and perfumes increased by 8 per cent to £1.1billion in the first six months of the year, compared with the same period in 2019
Shares, listed in Hong Kong, rose 11.7 per cent, or 6.35HKD, to 60.7HKD on the news. The previous day luxury rival Hermes delivered revenues of £3.6billion in the first half of 2021, an increase of a third compared with 2019, at constant exchange rates.
The sector’s strong performance comes despite ongoing Covid restrictions, particularly on wealthy international tourists.
Brands have harnessed social media to appeal to local audiences. Prada’s chief executive, Patrizio Bertelli, hailed the ‘stronger ties’ his company had developed with customers during the pandemic.
Hermes executive chairman Axel Dumas hailed his firm’s ‘exceptional’ results too.