A handbag is seen behind a display window at a Prada store in Hong Kong June 3, 2011. REUTERS/Bobby Yip/File Photo
Prada SpA reported a rebound in full-year earnings but said the war in Ukraine makes it difficult to predict results this year.
Operating profit rose to 489 million euros ($535 million) in 2021, the company said Monday. That beat the average analyst estimate of 419 million euros and was back above pre-pandemic levels.
The luxury-goods industry is bracing for a more difficult year after Russia’s invasion of Ukraine and amid concern that a resurgence of Covid could weigh on demand in China.
Prada shares fell 4.2% in Hong Kong before the announcement, which came after the market closed. Luxury stocks fell Monday after China placed the 17.5 million residents of the southern city of Shenzhen into lockdown for at least a week.
"Prada Group’s start to 2022 has been strong,” Chief Executive Officer Patrizio Bertelli said in a statement. The company is confident to achieve its medium-term targets, "even though it is difficult to predict the impact of the Ukraine conflict on the global economy.”
Since early March, Prada has joined other luxury groups such and LVMH and Kering in suspending its retail operations in Russia.
