Prada 2011 net profit climbs 72.2%

Italian luxury design house Prada said Thursday its net profit soared 72.2 percent in the year ending January 2012, driven by strong retail sales especially in Asia. Net profit rose to 431.9 million euros (575.29 million dollars) compared to 250.8 million euros previously, the company told the Hong Kong stock exchange where it listed last year with a $2.46 billion initial public offering. Consolidated net revenues grew 24.9 percent to 2.56 billion euros, boosted by a 37.6-percent jump in retail net sales to 1.96 billion euros. The family-controlled firm said its growth strategy had paid dividends, with the opening of 75 new stores across 17 countries including Russia and the United Arab Emirates for the first time. The company will propose a dividend of 0.05 euros per share. The IPO was the largest consumer goods listing in the world during the year, and saw 19 percent of the group's shares listed on the Hong Kong Stock Exchange, it said. The Italian group, which includes the Prada, Miu Miu, Church's and Car Shoe brands, was one of several Western luxury brands to tap the huge Chinese market last year. China is the world's fastest-growing market for luxury goods and is forecast to be the world's top buyer of products such as cosmetics, handbags, watches, shoes and clothes by 2015, according to consultancy PricewaterhouseCoopers. "For the third consecutive year, the Asia Pacific market was confirmed as leader both in absolute terms and for growth," Prada said in its earnings statement. The region generated net revenues of 873 million euros in 2011, up 42.2 percent, while net sales in Europe amounted to 540.1 million euros, a gain of 19.9 percent over the year. Prada was the strongest brand in the group, contributing 79.2 percent of net sales, followed by Miu Miu with 17.5 percent. The Car Shoe brand's total sales fell five percent. "We will aim to consolidate the group's position as a leading luxury goods business on all international markets and will continue to draw on innovation, quality and respect for tradition," Chief Executive Patrizio Bertelli said. Prada listed in the southern Chinese banking hub in June with an IPO price of HK$39.50. Its shares closed 1.75 percent higher at HK$4955 on Thursday, ahead of the earnings announcement, bucking the overall market which fell 1.32 percent.