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Stocks of Italian fashion house Prada S.p.A (HKEX:1913) started creating a buzz in the North American markets early on Monday, January 18, a day after its first-ever virtual unveiling at the Milan Fashion Week Fall-Winter 2021.
The four-day men's fashion event is unfolding on social media platforms as three regions in Italy return to lockdown amid soaring numbers of COVID-19 infections. The lockdowns came around the same time on Sunday as Prada presented its new collection of luxury long-johns in a digital preview at the event’s live telecast.
Let’s look into Prada’s recent stock performance.
Prada S.p.A (HKEX:1913, PRDSY:US)
The Prada stock registered a drop of nearly two per cent to close at 46.2 HKD (C$ 7.6) on Monday at the Hong Kong Stock Exchange (HKEX), where it was publicly listed in June 2011.
Stocks of this world-famous fashion house soared by about 55 per cent in the last three months and by nearly 69 per cent in the last six months. However, its shares have slid by approximately 10 per cent in 2021 (year-to-date).
Prada S.p.A Financial Performance
Prada, like most enterprises in the fashion industry, suffered massive operational and financial setbacks for most of 2020 amid the pandemic. But near the end of the year, the Milan-based company managed to bounce back to profitability.
©Kalkine Group 2020
In a financial update released earlier this month, the luxury clothing line said that it recorded “progressive recovery” in its sales numbers during the second half of 2020. This, the company said, resulted in its retail sales recovering to their pre-pandemic levels from 2019-end.
After operating with an average of 40 per cent stores closed between February and May last year, the Prada Group incurred an operating loss of 195 million euros in the first six months of 2020. Its revenues for the period amounted to 937 million euros, down from 1,570 million in the first half of 2019.
However, as the economy began reopening in phases around the world, Prada’s average store closure rate came down to nine per cent in the second half of 2020, resulting in the rebound in its sales numbers.
