Prada on parade as wealthy Asian buyers drive up profit

Italian fashion powerhouse Prada is pushing ahead with its retail expansion after a burgeoning army of wealthy Asian buyers helped it beat forecasts with a 72 per cent rise in full-year profit.

The Milan-based maker of luxury hand bags and Miu Miu dresses said net profit for the year to 31 January was €432 million (£360m).

Revenues climbed by a quarter to €2.56 billion, led by a 42 per cent leap in sales to the Asia-Pacific region.

The firm said that, after 75 store openings in 2011, it would progress with its strategy to average 80 openings per year for 2012 and 2013.

Half of the new shops will be in fast-growing markets such as Asia, Brazil, the Middle East and Morocco.

While demand from emerging markets has powered growth among luxury brands, other retailers are finding the going harder. Budget fashion chain H&M said yesterday its margins had been squeezed by rising costs as it held prices steady to encourage hard pressed consumers. It still managed to grow net profits by 5 per cent to £259m in the three months to February.

FARAH MASTER