Prada considers secondary listing in Milan

Italian luxury fashion group Prada is considering a secondary listing in Europe in addition to Hong Kong, but said Asia remained a vital source of sales for the company.

Patrizio Bertelli, who with his wife Miuccia Prada has built the Milan-based company into a global fashion powerhouse worth 14 billion euros over the past 30 years, said a listing in Milan would be “in line with the group’s heritage.

“Many companies are listed in two jurisdictions,” Bertelli told the Financial Times, adding: “Obviously we are not looking to exit Hong Kong – Asia is a hugely important market for our group.”

He also reiterated the family’s long-term commitment to the business, saying they wanted to retain the 80% stake they currently hold through Prada Holding SpA.

Prada raised $2.1 billion when it listed a 20% stake in Hong Kong in June 2011. At the time, Italian luxury brands were booming in Asia and Prada hoped a listing at Hong Kong would allow him to capitalize on his popularity.

Bankers and analysts believe a dual listing would spur growth by diversifying the investor base. Prada hired former Goldman Sachs banker Andrea Bonini as chief financial officer three months ago. However, the group and its advisers are exploring several options and there is no guarantee that Milan’s listing will continue.

There are currently no dual listings between Hong Kong and Milan and there are significant technical questions about how a listing would work, including how shares would be traded between the two markets.

Prada unveiled its half-year results on Thursday, posting 1.9 billion euros in net revenue, up 22% year on year. Retail sales increased by 26% over the same period to reach 1.7 billion euros, an improvement of 38% compared to 2019, before the Covid-19 pandemic.

The group made the strategic decision to reduce its wholesale activity, which accounts for 9% of the total, by reducing sales through third-party channels. Wholesale sales fell 3% from the same period last year and 39% from 2019.

“The pandemic has kept people under pressure [and] it’s a reaction, people are now willing to spend,” Bertelli said. “There is a social change in consumption. . . purchases have become more emotional and less thoughtful.

Prada sales fell 7% in Asia-Pacific in the first half, but the region remains the main source of revenue. First-half retail sales amounted to 590 million euros.

Bertelli said regional policies during the pandemic had had a major effect: “Businesses are bearing the brunt of the zero-Covid policy and repeated closures.”

All of Prada’s other markets, including Japan, have seen continued growth since Covid restrictions were gradually eased in 2021. Retail sales in Europe increased 89% to 486 million euros from in the first half of last year, driven by domestic sales and an increase in tourism. from North America.

Like other European fashion houses, Prada closed its retail stores in Russia, which accounted for 2-3% of total sales, in March.

North American sales rose 41% to 360 million euros in the first half of the year, up 116% from pre-pandemic levels.

Comments are closed.