Half Year 2024 Prada SpA Earnings Call (Italian) Transcript
Key Points
- Prada SpA (PRDSF) reported a solid first half of 2024 with net revenues of EUR2.55 billion, up 17% versus H1 '23 at constant FX.
- Retail sales reached EUR2.26 billion, up 18% versus H1 '23 at constant FX, showing consistent growth across both Prada and Miu Miu brands.
- EBIT margin improved to 22.6% in H1 '24 from 22% in H1 '23, indicating better profitability.
- Miu Miu showed exceptional performance with a 93% increase in retail sales, contributing 23% to the group's retail sales.
- The company continues to invest in digital and IT infrastructure, with EUR169 million in CapEx for the first half of 2024, enhancing operational efficiency.
- The macroeconomic environment has become tougher, impacting consumer sentiment, particularly in China.
- Gross margin slightly decreased by 50 basis points to 79.8% due to FX impacts.
- Operating costs increased by 14% at constant FX, driven by higher investments in client-facing activities and other discretionary spending.
- The Americas region showed slower growth, with retail sales up only 7%, indicating challenges in this market.
- The company faces ongoing challenges in recovering market share in Asia, despite good operational teams and infrastructure.
Good afternoon, everyone, and thank you for joining Prada Group's first-half 2024 results call. I'm delighted to be with you again. Alongside me today are Mr. Andrea Guerra, Group CEO; and Mr. Lorenzo Bertelli, Group CMO and Head of CSR.
Mr. Guerra will start today with highlights for the first half of 2024 and a business update, followed by Mr. Lorenzo Bertelli with an overview of our marketing activities and ESG initiatives. I will then present our financial performance before Mr. Guerra signs off with some closing remarks. We'll then move to Q&A.
Before we start, please be reminded that during today's call, we may discuss forward-looking statements, which are subject to risks, uncertainties, and factors beyond our control that could cause the actual outcome and returns to differ materially from such statements. Please refer to the disclaimer included on slide 2 of our presentation.
With that, I will hand over to Mr. Guerra.
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