Prada has posted strong results for the first four months of the year, with CEO Patrizio Bertelli saying that the company’s performance in the US had helped it reduce the impact of events in Russia and China.
The Italian luxury group has suspended operations in Russia following the invasion of Ukraine on February 24th, whilst its Chinese operations have been heavily impacted by restrictions imposed in the wake of a resurgence in Covid-19 cases.
Russia is a small market for Prada, accounting for just 2% of sales. The Chinese market however generates significantly more revenue for the Milan-based firm, who are listed on the Hong Kong stock exchange.
“China is important and for the past 15 days we have had more than 50% of our shops closed,” Bertelli said, adding that the company may consider a dual listing on the Milan stock exchange in the future.
He said that the company “did well, above expectations” through challenging times, with sales in the US offsetting the loss of business in China.
The Prada chief also repeated his intent that his son Lorenzo Bertelli will succeed him, offering a timescale of “three to four years”.
Prada’s share price mostly recovered from the small drop the previous day in response to continued shutdowns in China, hitting a day high of HK$48.85.