Prada Brand Three Quarter Results Slightly Dim, Low Price Promotion Drag Brand Image

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< p > Prada brand profit increased by 7.9% to 440 million 900 thousand euros in the three quarter, and operating income increased 10.7% to 677 million 800 thousand euros.

In addition to the expected net profit growth in the latest quarter, Prada group also warned the European market that sales in the last two months of 2013 may be down year by year.

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< p > at the same time, it also affirmed the contribution made by Prada brand and "a target=" _blank "href=" http://www.91se91.com/ "leather" /a "goods to the group, while Miu Miu brand sales increased by only 2% in the first 9 months, and dropped 2.3% in the three quarter.

But Mr. Patrizio Bertelli, executive director of the group, expressed strong belief that the performance of Miu Miu in 2014 will show a sharp upward trend.

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< p > < strong > MiuMiu > a href= "http://sjfzxm.com/news/index_c.asp" > brand < /a > growth rate decreased < /strong > /p >

< p > although the combined income in the first 9 months was pretty good, the group's net income in the three quarter was 848 million euros, up 7.1% from 792 million euros in the same period last year.

Profits before interest, taxes, depreciation and amortization amounted to 270 million euros, representing an increase of 4.4% over the same period last year.

Retail store sales grew 7% year-on-year, the trend is basically the same as in the first half of the year.

The growth rate of these digit figures obviously slowed down compared with the first half of the year, but Prada brand and leather goods category played a major role in promoting the growth of the group.

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Less than P, the net income contribution from retail channels was 760 million euros, accounting for 90.5% of the total revenue, representing an increase of 10.5% over the same period last year.

The net income of independent customers and licensed products dropped by 16.4%.

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According to geographical distribution, the growth rate of the Americas and the Middle East increased by 13.6% and 89.2% respectively, while the growth rates in Italy and Europe were only 3.4% and 5.2% respectively. P

The Asia Pacific region, which occupies the largest market share, has only one digit growth, an increase of 7.87% (a 13% increase under constant exchange rate), which shows a marked acceleration slowdown compared with 24.8% and 17.9% in the first quarter and the two quarter.

Among them, 195 million 900 thousand euros in the Greater China region increased by only 7.93% over the same period last year.

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< p > from the brand division, in addition to Prada brand showing 9.5% growth to 704 million euros, MiuMiu, Church 's, Car Shoe all decreased at 2.3%, 2.8% and 10.3% respectively.

But by the end of October this year, Prada and Cotti (CotyInc.) have reached a partnership. They will create, develop and distribute the logo perfume series with the MiuMiu brand. The MiuMiu perfume series is expected to be launched in 2015, which is regarded as a new move for Prada to boost sales performance.

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Besides P, Miu Miu has also expanded its flagship store in Beijing, a famous shopping area in Hongkong, covering an area of 1000 square meters. Its purpose is to continue expanding its Asian business.

To this end, Miu Miu has launched a series of specially restricted versions of < a target= "_blank" href= "http://www.91se91.com/" > clothing "/a", handbags and a target= "_blank" target= "shoes".

It is reported that all boutique is restricted to Miu Miu flagship store at Beijing road.

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< p > despite the poor performance of the two main brands of Prada and Miu Miu, although the third quarter earnings increased by 9% to 133 million euros per year, the performance was not expected, and the turnover did not reach the expected increase of 10%. However, the number one CLSA in the investment bank did not seem to have lowered expectations for Prada group, and continued to maintain a buying rating, with the target price rising to HK $87.8.

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P will also note that the gross profit margin of the group has improved from 73% in the same period last year to 75.5%.

Therefore, it is believed that its business can still win the same trade.

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< p > but the Swiss bank's view is not optimistic. The forecast of operating profit in the current fiscal year is about 2%, but it is still given a "buy" rating with a target price of 85 yuan.

Barclays reduced the 2014 and 2015 fiscal year earnings forecasts by 4% and 3% respectively, and lowered the target price by 3% to 72 yuan, giving a "holding" rating.

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< p > < strong > abandoning the low price < a href= "http://sjfzxm.com/news/index_c.asp >" promotion "/a >" overweight shop "/strong > /p >

The difference between P and the investment bank is normal. Patrizio Bertelli is not worried about this and is confident of the coming 2014.

After the release of the earnings report, Prada group management expressed its satisfaction with the performance of the Chinese market on the teleconference. Although the number of Chinese tourists traveling to Europe showed signs of decline, the number of tourists to the United States increased.

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< p > group also pointed out that the new tourism law implemented in the eleven national day week may have an impact on the business of Hong Kong and Taiwan, but stressed that the impact was only pient and affected only a low consumption group.

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< p > but management is dissatisfied with the sharp reduction in prices and promotions in the US market.

Patrizio Bertelli bluntly said, "too many department stores in the United States focus solely on the financial situation and ignore the products themselves.

As I and my team have said before, such a management mechanism is too confusing. What we see there are endless cheap goods and discount products. These stores do not enhance their brand image and products at all. "

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< p > discount sales undoubtedly mean a drop in profits, and cleaning up inventory is an important reason for the decline in gross profit.

A bigger threat is that large discounts will narrow the gap between luxury goods and general consumer goods.

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Less than P, but its noble, rare, unique and expensive characteristics gradually disappear, and this is the foundation that the industry once lived on and passively shook.

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< p > according to relevant media reports, Patrizio Bertelli said: "if Prada wants to increase sales, we can increase 10 million to 20 million euros in a moment, as long as we agree with the sales promotion policy of us department stores, but we want to cooperate with wholesalers who are" serious, respecting brands ", so we prefer to give up market share and protect their brands and products.

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< p > for the slow growth of the Greater China region, Mr. Patrizio Bertelli said: "the pace of consumption of Chinese consumers has not ceased. The number of overseas tourists has increased dramatically. Many people choose to shop in the US and Europe. In the future, the European market should not fluctuate in general. We are still very optimistic about the market in Italy and Spain."

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< p > statistics show that in the first nine months of fiscal year 2013, the number of Direct stores in the group increased by 55, of which 66 new stores were opened and 11 were closed.

According to the earnings report, only 14.3% of the net sales in the first nine months came from wholesale channels, down 6.5% from the same period in 2012.

This shows that the group's strategy is to build independent customers, and plan to convert the franchise stores in the US and Canada into direct stores.

It is reported that eight new stores will be opened next year.

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< p > Prada group also once again made clear that the unfavorable exchange rate and weak consumption patterns in some areas may have an impact on the performance, but new stores will continue to open next year. The management believes that the new market strategy, company policies and new products in the spring and Autumn period can keep Prada's profits, ensure profitability and continue to expand the retail business.

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