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Prada confirms targets after ‘strong start’ to 2022 -Breaking

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© Reuters. FILE PHOTO Prada signs are seen in their Woodbury Common Premium Outlets, Central Valley, New York. This was on February 15, 2022. REUTERS/Andrew Kelly

MILAN (Reuters – Italy’s Prada has confirmed that it will continue to grow its medium-term targets after a “strong start” in 2022. But, Prada said that the war in Ukraine could make predictions difficult.

Prada announced earlier this month that it has suspended Russian retail operations following the a series of leading brands. This was in response to Russia’s invasion in Ukraine.

It said Monday that Russia was responsible for approximately 2% of Prada’s total 2021 sales.

EBIT (earnings before interest & taxes) rose to 489million euros in 2021, from 20million euros a year ago. That’s a jump of over 307million euros posted in 2019, just before the COVID pandemic.

A Refinitiv consensus found that analysts had predicted a profit of 429 million euros.

Strong start for Prada Group to 2022. CEO Patrizio Bernardelli released a statement saying that “our long-term strategic plan is on track” and added that he felt confident in meeting medium-term targets even though it was difficult to forecast the effects of the Ukraine conflict on global economic growth.

According to the Hong Kong-listed, Milan-based group, a 7-euro cent per share dividend would be proposed. The payout ratio is 61%.

According to January’s fashion house, sales in 2013 rose by more than a year since the pandemic and reached 3.36 billion euros.

The group set a November medium-term revenue target of 4.5 billion euro and stated that it aimed to achieve an operating profit of 20% from total sales over the medium term.

The operating profit for last year was 14.5%, an increase from the 9.5% recorded in 2019 prior to the outbreak of coronavirus.

Prada is a well-known brand for minimalist design and was undergoing a shift to online and upmarket to boost sales when the coronavirus epidemic struck. This forced retailers around the world to close their stores and deprived them of tourists spending.

The family-owned business has emerged strong from the crisis, just like luxury companies. This is due to the desire of cooped up consumers to indulge in high-end shopping.

($1 = 0.9126 euros)

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