Prada's Wholesale Business Drags Down Sales

Apparently, Europeans aren't buying much Prada or Miu Miu these days.
Avatar:
Eliza Brooke
Author:
Publish date:
Social count:
40
Apparently, Europeans aren't buying much Prada or Miu Miu these days.
A look from Prada's Fall 2014 show. Photo: Imaxtree

A look from Prada's Fall 2014 show. Photo: Imaxtree

Revenue growth flatlined for Prada Group in the first quarter of 2014, which ended April 30. Although net retail (or direct-to-consumer) sales grew three percent, the luxury company's wholesale business proved a bit more challenging -- sales there dropped 25 percent. According to an earnings report released Thursday, that decrease in part owes to "stagnant" demand in some European countries.

Europe, which represents 20 percent of the company's sales, proved to be tricky across the board: Miu Miu showed double digit growth in all of its markets except for Europe, while Prada had the most success in Japan and the U.S. At this point, Asia Pacific accounts for 41 percent of the group's overall sales.

Of all of Prada Group's holdings, however, its most under-the-radar brand, Church's, actually showed the most sales growth: Its sales went up 14 percent as compared to Prada and Miu Miu's respective three and two percent overall sales increases. (In case you weren't aware, Church's is a very English shoe company and a favorite of Tony Blair.) That said, Church's still accounts for just one percent of the company's total sales, while Prada represents 84 percent of it.