More and more Chinese wear Prada

Italian luxury fashion house Prada has unveiled a surge in first-half profits on the back of strong sales of leather bags and wallets to Chinese and other Asian customers.

The 74 per cent profits jump beat the forecast in the Milan-based retailer’s prospectus, which was released ahead of its $2 billion-plus (£1.3bn-plus) fundraising on the Hong Kong stock exchange in June.

Prada said net income leapt to €179.5 million (£156.3m) in the six months to 31 July, while revenues rose 21 per cent to €1.13bn.

The company said Asia-Pacific sales grew an “outstanding” 35.4 per cent in the first half, with the Greater China region making the biggest contribution.

Carlo Mazzi, deputy chairman, said: “We are continuing exactly what we planned in terms of investments, particularly new openings of shops. We are in the luxury goods markets and not in the mid-market. Usually this segment of the market is less hit by the crisis.”

The firm had said in its listing prospectus it planned to add about 80 directly operated retail outlets in its financial year to January, of which 25 stores would be in Asia-Pacific. It had 319 directly operated outlets as the end of January.

ERIKKA ASKELAND