Prada’s Leather Bags Carry Earnings Higher
Prada has had a large increase in sales, most notably with leather products. Prada has been opening large amounts of stores these past few years in Asia, Middle East and South America. They believe the increase in amount of stores will lay a good foundation for future success. Much of the net profit has come from the investments in Asia. The Asian-Pacific region alone has increased sales by 33% to over 1.16 billion euros. Their loyal pool of consumers are flocking toward purchasing leather bags and wallets. This year the company’s net profit has rose roughly 45%, to 625 million euros, while revenue has rose to almost 3.3 billion euros.
Much of Prada’s success is their move toward opening and operating their own company stores. Prada’s movement away from wholesale businesses into directly operated shops have been increasingly profitable. The company is doing so well they plan on opening 80 more shops globally this year.