Prada 9-Months Net Profit Jumps 50% Amid Continued Strong Demand
12/06/2012| 07:12am US/Eastern
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By Nadya Masidlover
Prada SpA (1913.HK) Chief Executive Patrizio Bertelli said Thursday that the company's business has continued to grow at a rate that has exceeded its expectations in recent months, as the luxury goods purveyor reported a strong rise in nine-month earnings figures amid resilient demand for ultra high-end goods.
Prada "has again shown that it has the necessary ability and spirit of initiative to generate positive results, even in the difficult current international economic climate," said Mr. Bertelli, without giving details regarding the company's outlook.
The Italian fashion group--home to brands like Miu Miu, Church's and eponymous label Prada--said Thursday that net profit jumped 50% on the year over the nine months ended Oct. 31 to 408.6 million euros ($535.3 million).
Sales over the period rose 35% to EUR2.34 billion, keeping more or less the same pace as in the first half of the year.
Prada's figures once again demonstrate how the pricier end of the luxury market continues to benefit from unflagging demand among the world's wealthiest shoppers, even as high-end brands with wider appeal have faced cooling sales growth in recent months.
A shift in demand in the all-important Chinese market has seen many consumers begin to turn toward the luxury industry's more exclusive names and extravagant price tags. The move has buoyed sales of costly handbags and watches made by labels such as Prada and peers Montblanc--owned by Compagnie Financiere Richemont SA (CFR.VX)--or Hermes International SCA (>> HERMES INTL).
Prada said in all of its markets it registered double-digit sales growth of above 20% at constant exchange rates over the nine-month period. Sales grew fastest in the Asia Pacific region, up 41%, boosted by Chinese consumers appetite for the company's prestigious accessories and garments.
Write to Nadya Masidlover at nadya.masidlover@dowjones.com
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