Prada S.p.A

Sector: Luxury Countries of operation: Over 70 countries Key product categories: Accessories, apparel and footwear Annual Metrics [caption id="attachment_144837" align="aligncenter" width="700"] *Fiscal years end December 31. Prior to FY17, fiscal years ended January 31.[/caption]   Summary Headquartered in Milan, Prada S.p.A is a holding company that manufactures and distributes luxury goods. Founded in 1913, its brands include Car Shoe, Church’s, Marchesi 1824, Miu Miu and Prada. It also operates in the eyewear and fragrance industries under licensing agreements. It owns 23 production facilities (20 in Italy and one each in France, Romania and the UK). The Prada Group’s products are sold online and through 635 directly operated stores, as well as high-end department stores, independent retailers and online marketplaces. Company Analysis Coresight Research insight: Prada Group experienced one of the deepest revenue declines among major luxury brands in 2020, with a revenue decline of 40% in its first fiscal half. However, in its second fiscal half, the group posted an 8% decline, marking a strong recovery. The Prada Group’s e-commerce revenues surged by 200% in 2020, as strong digital strategies in recent years enabled the company to respond rapidly to the pandemic-driven spike in e-commerce. In fiscal 2021, Prada’s revenues were up 38.9% year over year and 6.3% on a two-year basis, indicating continued recovery. The Prada Group has managed to weather the impacts of global lockdowns due to the strength of its vertically integrated supply chain and its acceleration of the active rationalization of its wholesale distribution channel amid the crisis. Based on its digitalization and supply chain strategies, Prada looks poised to recover strongly over the course of this year.

Tailwinds	Headwinds
Pent-up demand for luxury Enhanced digital channels enabling better customer experiences Ongoing recovery in travel and tourism	Economic recovery variability and uncertainty across global markets Heightened competition from larger luxury houses, specifically those with advanced digital strategies Continued lockdowns in China and their impact on sales.

  Strategy Prada has laid out the following strategies to recover and garner greater sales and market positioning: 1. Brand Elevation

• Focus on full price sales, improving the product offerings and strict control over the distribution channels

2. Direct-to-consumer

• Prioritize retail over wholesale, accelerate digital offerings and continue improvements to the omni-channel customer journey

3. Responsible Growth

• Continue to implement sustainable product manufacturing and circularity, and diversity, equity and inclusion initiatives

Revenue Breakdown (FY20)   Company Developments  

Date	Development
April 28, 2022	The Aura Blockchain Consortium, founded by LVMH, Prada Group, Richemont’s Cartier and OTB Group, partners with Sarine Technologies to use the latter’s Diamond JourneyTM traceability application and data on the Aura Blockchain platform. The application will help improve product traceability standards from raw materials to the finished product stage in the luxury sector.
March 23, 2022	Prada appoints Andrea Bonini as CFO effective May 2, 2022. Alessandra Cozzani, the company’s CFO since 2016, will remain an executive until she leaves the company in September 2022 to pursue other professional opportunities. Bonini joins Prada from the investment banking division of Goldman Sachs, where he has been Managing Director overseeing Luxury and Brands in Europe as part of the Consumer Retail group.
February 8, 2022	Prada partners with French gaming company Ubisoft, to offer its Prada Linea Rossa fashion line in the outdoor sports video game Riders Republic, signaling Prada’s continued foray into the metaverse.
January 20, 2022	Adidas  and Prada call on 3,000 artists to create a piece of digital art that will form one single non-fungible token (NFT). The final NFT will be auctioned on SuperRare, a marketplace for NFTs.
January 5, 2022	Prada announces luxury sportswear collection with Adidas. Items in the collection are made from Prada’s proprietary recyclable Re-Nylon fabric.
April 20, 2021	Prada partners with LVMH and Richemont to develop the Aura Blockchain Consortium, a private blockchain secured by ConsenSys technology and Microsoft. The blockchain platform will allow users to trace the lifecycle of a product, from raw material to purchase.
	Prada joins The Valuable 500, a global community dedicated to improving disability inclusion among major global companies.
October 21, 2020	Prada appoints Malika Savell as Chief Diversity, Equity and Inclusion Officer for Prada North America.
February 23, 2020	Prada appoints Raf Simons as the company’s first ever Co-Creative Director, effective April 2, 2020. He will work alongside Miuccia Prada Bianchi. Their first co-directed collection will be the Spring/Summer 2021 womenswear show in September 2020.

  Management Team

• Carlo Mazzi—Chairman and Executive Director
• Miuccia Prada Bianchi—Founder, CEO and Executive Director
• Patrizio Bertelli—Founder, CEO and Executive Director
• Alessandra Cozzani—CFO and Executive Director

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Source: Company reports/S&P Capital IQ