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Prada to post 2020 operating profit after strong second-half rebound in sales

Prada to post 2020 operating profit after strong second-half rebound in sales

A man walks past a closed Prada shop after partial lockdown measures were introduced amid the coronavirus disease (COVID-19) outbreak in Geneva, Switzerland, Nov 16, 2020. (Photo: REUTERS/Denis Balibouse)

MILAN: Italian fashion group Prada said on Tuesday (Jan 5) that it would close 2020 with an operating profit despite the hit from the coronavirus crisis, after revenues and profitability improved markedly in the second half of the year.

The Milanese luxury brand said it had decided to provide the unscheduled business update, before disclosing full-year results in March, due to the extraordinary situation and uncertainty created by the COVID-19 pandemic.

The fallout from the COVID-19 crisis triggered a 40 per cent decline in Prada's like-for-like revenues in the first half of the year leading to a €196 million operating loss (US$240.5 million).

Prada said the second half of 2020, "despite being impacted by ongoing store closures averaging 9 per cent of the network, saw a progressive recovery in sales, culminating for the retail sales in a full recovery to 2019 levels in the month of December."

Source: Reuters/kv

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