NEWS

Milan, 29 July 2021 – The Prada S.p.A. Board of Directors approved the Consolidated Financial Results for the Half Year, ended 30 June 2021, highlighting the following topics:

• Strong progress in Retail revenues, well above H1-2019 levels;
• Profitable growth driven by full-price sales;
• E-commerce growing by triple-digit percentage for the fifth quarter in a row;
• Increasing store productivity;
• Gross Margin improved at 74.3% of revenues;
• Efficient management of operating expenses and production cycles;
• EBIT above pre-Covid levels;
• Strong cash flow generation and marked improvement in Net Financial Position.

As a consequence of the above, the following results were achieved:

• Total Net Revenues at Euro 1,501 million, up 60% at current exchange rates on H1-2020 and 66% at constant exchange rates
• Retail sales up 60% versus H1-2020 and up 8% against H1-2019 at constant exchange rates, showing a strong acceleration in the second quarter
• Wholesale sales down 37% against H1-2019, consistent with our selective approach
• EBIT at Euro 166 million (11.1% on revenues), ahead of Euro 150 million in H1-2019 (9.6% on revenues)
• Net Income at Euro 97 million
• Operating cash flow at Euro 316 million
• Capex at Euro 75 million
• Net Working Capital at Euro 622 million, better than FY-2020, thanks to effective inventory management
• Net Financial Position at Euro -102 million, improving from Euro -311 million at 31 December 2020

The Prada Group has continued to strengthen and invest in its brands, through strict control of the distribution channels on-line and off-line as well as the enhancement of the product offer.

This resulted in a strong revenue growth - with sales well above 2019 levels despite the ongoing effect of the pandemic.
EBIT returned to pre-Covid levels and the strong operating cash flow generation contributed to significantly improve the Net Financial Position.

Patrizio Bertelli, Chief Executive Officer of the Prada Group, commented:
“The commitment to our brands and stronger ties with our customers have delivered robust growth in sales across markets and product categories. We improved gross margins as well as the Group’s profitability, despite the uncertain environment. The sales momentum will stay strong in the second half of the year. Our brands have plenty of potential and we will unlock it over the medium term. I look forward to updating the market on this and other topics at a Capital Markets Day that will take place in the autumn”.