Considering the economic turmoil that we are facing currently, it is very rare that you hear about companies which are declaring profit at the end of the quarter. Even the companies that are making profit are the ones that have products designed for the affordable market segments, and rarely luxury brands that have more to offer.
All this has changed with Prada declaring a profit from its previous financial year. This is had led industry pundits to rethink about the current economic situation and alter their predictions.
Prada is synonymous with high end luxury items that are usually not very affordable. However, with profit surpassing company expectations, it has become clear that their products are still pretty much in demand and there are quite a lot of people out there who are willing to pay a premium price for these products.
It looks like having the right business plan is what is required in the end, and if you don’t have that, you are going to have real trouble trying to succeed and do something substantial with the brand.
Prada made a very good profit of approximately 99 million Euros, which was lower than what they had the previous year, but nevertheless a decent profit margin. The company also denied any inclinations to sell any of their current assets and is instead focusing on retaining their market share with the same holdings that they enjoy in the different subsidiary brands.
With more emphasis on development, it looks like Prada is exactly sure of what they want and how to stay in profit for a long time to come.