Financial Performance - The net sales for the year ended December 31, 2019, were €1,780,423 thousand, an increase of 5% from €1,691,476 thousand in the previous year[12]. - The gross profit margin remained stable at 53.8%, while operating expenses as a percentage of net sales increased, leading to a slight decline in EBIT from 11.8% to 11.3%[13]. - The net income for the period was €249,027 thousand, representing a 13.7% increase compared to €708,548 thousand in the previous year[12]. - The EBITDA for the year was €307,897 thousand, reflecting a growth of 16.8% from €265,084 thousand in the previous year[12]. - The total equity as of December 31, 2019, was €2,016,425 thousand, compared to €1,914,992 thousand in the previous year[15]. - The debt-to-equity ratio increased to 7.6% from 6.6% in the previous year[15]. - The company paid dividends totaling €153.5 million during the year[17]. - The company reported a net income of €249,027,388 for 2019, a significant decrease from €708,548,197 in 2018, representing a decline of approximately 64.9%[72][73]. - The company’s equity increased to €2,016,425,204 in 2019 from €1,914,992,188 in 2018, reflecting a growth of about 5.3%[71]. Strategic Initiatives - The company achieved significant results in its long-term growth objectives, driven by global consumer demand for innovation and excellence[10]. - The decision to eliminate discount sales in direct-operated stores and rigorously select wholesale buyers improved product value and pricing control, leading to positive retail growth[10]. - The launch of the "Prada Invites" and "Prada for adidas Limited Edition" capsule collections highlighted the symbolic value of products and established important business alliances[10]. - The company invested in enhancing its brand image and store network, acquiring Fratelli Prada in Milan to gain full control over its global retail network[11]. - Significant progress was made in sustainability, with the introduction of the "Prada Re-Nylon" capsule collection and a commitment to reduce the fashion industry's environmental footprint[11]. - The company focused on consumer interaction through a comprehensive communication plan, ensuring broad coverage of product and brand messaging[10]. - New versions of "Prada Mode" were launched in Hong Kong and London, promoting contemporary culture through a mobile club concept[10]. - The company established key partnerships with leading technology suppliers to assist in marketing and procurement processes[11]. Financial Position and Cash Flow - The net working capital increased to €230,738 thousand, up by €52,892 thousand from €178,846 thousand in the previous year[17]. - The net financial position as of December 31, 2019, was a deficit of €189,116 thousand, compared to a deficit of €136,131 thousand in the previous year[17]. - Cash flow from operating activities was €201 million, while cash used in investing activities was €63 million[21]. - The company has a total available credit line of €574 million as of December 31, 2019, compared to €497 million at the end of 2018[20]. - The company anticipates a negative impact on its performance for the current year due to the COVID-19 outbreak, despite a positive start to 2020[23]. Governance and Board Structure - The board consists of nine directors, including four executive directors, one non-executive director, and four independent non-executive directors[29]. - The board held four meetings during the review period, with an average attendance rate of 83.3%[30]. - The audit committee and nomination committee had attendance rates of 94.4% and 100%, respectively[33]. - The board is responsible for the overall strategy and financial performance of the company, including major transactions and acquisitions[34]. - Independent non-executive directors have confirmed their independence according to applicable listing rules[36]. - The company has arranged appropriate liability insurance for directors, which is reviewed annually[37]. - Directors undergo comprehensive training upon appointment to understand the company's business and their responsibilities[38]. - The chairman is Carlo Mazzi, while Miuccia Prada Bianchi and Patrizio Bertelli serve as co-CEOs, with the roles being independent[39]. Audit and Compliance - The audit committee held six meetings during the review period with an attendance rate of 94.4% to review significant internal and external audit results[44]. - The total fees for the auditor Deloitte & Touche S.p.A. for the period ending December 31, 2019, amounted to €714,000, including €500,000 for audit services and €214,000 for other consulting services[46]. - The audit committee's responsibilities include providing independent opinions on the effectiveness of the company's financial reporting procedures and internal control systems[44]. - The company reviews compliance with governance codes and monitors internal control and risk management systems through the audit committee[41]. - The board has established various committees, including the audit committee, compensation committee, and nomination committee, with independent non-executive directors as chairs[42]. Risk Management - The company faces financial risks such as exchange rate and interest rate fluctuations due to its international operations, and it employs hedging contracts to manage these risks[117]. - The fair value of hedging derivatives for interest rate risk is recorded in equity, net of tax effects[119]. - The company’s risk management activities include derivative contracts to mitigate financial risks arising from currency and interest rate fluctuations[134]. - The company has entered into contracts to hedge anticipated future trade cash flows totaling €763,629 thousand as of December 31, 2018, with a significant portion in foreign currencies such as USD and CNY[138]. - The company has established interest rate swaps to hedge against interest rate fluctuations related to loans, with agreements in place as of December 31, 2019[141]. Investments and Assets - The company’s total financial assets amounted to €1,363,325 thousand as of December 31, 2019, with derivative financial instruments valued at €10,854 thousand[145]. - The total value of property, plant, and equipment as of December 31, 2019, was €805,677 thousand, up from €766,699 thousand in 2018, indicating a growth of 5.1%[168]. - The total intangible assets' net book value as of December 31, 2019, was €194.6 million, with significant components including trademarks and software[172]. - The company’s investment in Kenon Limited remained stable at €99,478 thousand, with no changes reported during the year[177]. - The company conducted impairment tests on investments showing signs of impairment, with a discount rate (WACC) used ranging from 4.2% to 12.6% for the year ended December 31, 2019[179]. COVID-19 Impact - The company noted that the impact of COVID-19 was not included in the business plan forecasts, as it occurred after the reporting date, indicating potential future risks[179]. - The impact of the COVID-19 pandemic on the financial statements remains uncertain and will continue to be monitored throughout the fiscal year[121].

Financial Performance - Prada Group reported a significant increase in sales, achieving a total revenue of €3.2 billion, representing a growth of 8% compared to the previous year[1]. - The company reported a net profit of €400 million, reflecting a profit margin of 12.5%, which is an improvement from the previous year's margin of 11%[1]. - PRADA reported a significant increase in revenue, achieving €3.2 billion in the first half of 2023, representing a 15% year-over-year growth[68]. - The company expects a continued positive trend, projecting a revenue growth of 10-12% for the full year 2024[68]. - The gross margin improved to 70%, up from 68% in the previous year, reflecting better cost management and pricing strategies[68]. - The net income for 2019 was €257,724 thousand, an increase of 31.1% from €196,384 thousand in 2018[111]. - Total net sales amounted to €3,183,339, reflecting a 2.8% growth year-over-year[79]. Retail Expansion - The company noted a 12% increase in retail sales, driven by strong performance in Asia and the Americas, with Asia accounting for 40% of total sales[1]. - Prada Group plans to expand its retail footprint by opening 30 new stores globally in the upcoming year, focusing on key markets such as China and the United States[1]. - PRADA plans to expand its retail footprint by opening 30 new stores globally in 2024, focusing on key markets such as the Middle East and North America[68]. - Prada operates 641 directly operated stores in prime locations of major international shopping centers, contributing to 82.8% of total sales from retail channels[36]. - The number of stores increased to 641, with 22 new openings and 21 closures, including 4 stores acquired in Milan[81]. E-commerce and Digital Strategy - Prada Group's e-commerce sales grew by 25%, highlighting the increasing importance of online channels in their overall strategy[1]. - The company reported a 12% increase in e-commerce sales, highlighting the growing importance of online channels[68]. - The company integrates its direct stores with e-commerce strategies to monitor sales performance in different markets in real-time[36]. - Prada has established significant partnerships with major online retailers to enhance its digital presence and e-commerce capabilities[42]. Sustainability Initiatives - The company is investing in new product lines, including a sustainable collection that aims to reduce environmental impact, with a target of 20% of total sales coming from sustainable products by 2025[1]. - PRADA has successfully launched a new sustainable product line, which accounted for 5% of total sales in the first half of 2023[68]. - The company emphasized its commitment to sustainability, aiming for 100% of its products to be made from sustainable materials by 2025[68]. - The Prada Re-Nylon campaign aims to fully replace virgin nylon with regenerated nylon, reflecting the company's commitment to a better environment[50]. - The group has made significant progress in sustainability, including the introduction of the "Prada Re-Nylon" capsule collection and signing the Fashion Pact to reduce the industry's environmental footprint[76]. Innovation and Product Development - The company is investing €150 million in new product development and technology enhancements to improve customer experience and operational efficiency[68]. - Prada Group is committed to innovation, with plans to invest €100 million in technology and digital transformation over the next three years[1]. - Creativity is at the core of the manufacturing process, with Miuccia Prada's innovative ideas and social awareness driving the design culture within the company[34]. - The launch of the "Prada Invites" and "Prada for adidas Limited Edition" capsule collections highlighted the brand's commitment to innovation and collaboration[75]. Human Resources and Workforce - Prada has a workforce of 13,988 employees from 105 countries, with women making up 62% of the total[43]. - The average tenure of production staff at Prada is 20 years, ensuring high levels of specialization and knowledge accumulation[35]. - The company has implemented a supplier audit program to control risks related to human rights violations and poor working conditions[45]. - Prada's retail training programs focus on enhancing professional skills and product knowledge, contributing to customer service excellence[44]. Corporate Governance and Compliance - The board of directors is responsible for preparing the consolidated financial statements, ensuring they reflect the group's business status fairly and accurately[177]. - The independent auditor, Deloitte & Touche S.p.A., has been reappointed for a term of three fiscal years, ensuring compliance with Italian law regarding auditor appointments[178]. - The company has a legal and regulatory compliance framework in place to mitigate risks associated with its global operations[140]. - The group participates in the OECD's International Compliance Assurance Program (ICAP), sharing extensive data with tax authorities in Italy, the US, the UK, Canada, and Australia[105]. Cultural and Artistic Engagement - The Fondazione Prada continues to host diverse cultural events and exhibitions, showcasing the company's commitment to art and culture[55]. - Recent projects include the restoration of a historic residence in Shanghai, transforming it into a multifunctional cultural venue[51]. - Prada's ongoing cultural initiatives include educational programs and workshops, furthering its engagement with the arts community[55]. - The company produced 18 short films titled "Miu Miu Women's Stories" by various renowned directors as of December 2019, showcasing its commitment to contemporary art[61]. Financial Management and Risk - The company faces economic risks that could negatively impact its operations, performance, cash flow, and financial condition due to global macroeconomic factors[97]. - The liquidity risk management strategy includes maintaining sufficient cash and credit lines to meet operational needs, repay loans, and pay dividends on schedule[103]. - The group manages credit risk primarily related to trade receivables and current assets, monitoring customer reliability and solvency through insurance agreements[103]. - The company has implemented a long-term incentive plan to retain key personnel essential for its expansion in the fashion and luxury goods sector[101].

Financial Performance - PRADA Group reported a significant increase in revenue, achieving €1.5 billion for the first half of 2019, representing a 10% growth compared to the same period last year[2]. - Net revenue for the six months ended June 30, 2019, was €1,570,123 thousand, an increase from €1,535,326 thousand for the same period in 2018, representing a growth of 2.3%[13]. - The net income attributable to the group for the first half of 2019 was €154,894 thousand, a significant increase from €99,457 thousand in the prior year, reflecting a growth of 55.8%[14]. - The company reported a net income of €154,431 thousand for the six months ended June 30, 2019, compared to €98,953 thousand for the same period in 2018, representing a 56.3% increase[48]. - The group reported a net income of €154,893,688 for the six months ended June 30, 2019, compared to €105,668,240 for the same period in 2018, marking an increase of 46.5%[172]. - The company reported a net income of €205,443 thousand, down from €217,721 thousand in 2018, showing a decrease of about 5.9%[189]. Sales and Market Performance - The company experienced a 12% increase in retail sales, driven by strong performance in Asia and the Americas, with Asia accounting for 40% of total sales[2]. - PRADA's e-commerce sales grew by 25%, now representing 15% of total sales, indicating a strong shift towards online retail[2]. - Retail sales in Europe reached €598,364 thousand, accounting for 38.7% of total sales, with a 6.3% increase from €563,003 thousand in the previous year[18]. - The Asia-Pacific region saw a decline in sales, totaling €498,578 thousand, which is a 4.0% decrease from €519,594 thousand in the prior year, representing 32.2% of total sales[18]. - The net sales in the Asia-Pacific market decreased by 4% at current exchange rates and 6.4% at constant exchange rates, with Greater China generating net sales of €336.6 million, down 2.3% at current rates and 5.1% at constant rates[21]. - The net sales in Europe increased by 6.3% at current exchange rates and 6.5% at constant exchange rates, with wholesale sales growth contributing positively to the region[21]. Cost and Margin Analysis - PRADA's gross margin improved to 70%, up from 68% in the previous year, reflecting better cost management and pricing strategies[2]. - The gross margin slightly narrowed from 72% to 71.7%, impacted by sales mix dilution, although this was mitigated by a better ratio of full-price to discounted sales[25]. - The cost of sales represented 28.3% of net revenue, compared to 28.0% in the previous year, indicating a slight increase in cost efficiency[13]. - Operating expenses increased to €975,275 thousand, accounting for 62.1% of net revenue, compared to 61.6% in the prior year[77]. Strategic Initiatives and Investments - The company plans to expand its retail network by opening 20 new stores globally in 2020, focusing on key markets such as China and the United States[2]. - PRADA is investing in new product lines, including a sustainable collection that is expected to contribute an additional €100 million in revenue by the end of 2020[2]. - The company has allocated €50 million for research and development in innovative materials and technologies to enhance product offerings[2]. - The company is exploring potential acquisitions to enhance its market position and diversify its product portfolio[2]. - The company is focused on sustainability and ethical practices in its production processes, aligning with global consumer trends towards responsible luxury[8]. Operational and Workforce Insights - The average number of employees increased to 13,618 from 13,044 year-over-year, indicating a growth in workforce[14]. - The company operates a comprehensive distribution and retail network across multiple regions, including the Middle East, Europe, Asia, and the Americas, with 100% ownership in many subsidiaries[8]. - The company has established a diverse portfolio of brands and services, including retail, production, and logistics, enhancing its operational capabilities[8]. Financial Position and Cash Flow - The net financial position showed a deficit of €506,634 thousand, worsening from a deficit of €313,505 thousand at the end of 2018[15]. - Operating cash flow for the first half of 2019 was €137,334 thousand, down from €180,018 thousand in the same period of 2018[14]. - Cash and cash equivalents totaled €327.5 million as of June 30, 2019, down from €599.8 million at the end of 2018[32]. - The total lease liabilities decreased from €2,449 million on January 1, 2019, to €2,419 million on June 30, 2019, due to payments made during the period[33]. Risk Management and Compliance - The group faces global macroeconomic risks that could negatively impact luxury goods consumption patterns and, consequently, its operations, performance, cash flow, and financial condition[35]. - The company is actively managing foreign exchange risks through derivative contracts to hedge against currency fluctuations affecting revenues and expenses[45]. - The company has established a tax risk management system that allows for open communication with Italian tax authorities, helping to minimize business risks[42]. - The company faces various legal and regulatory risks due to its complex operating environment, including compliance with securities listing rules and occupational health and safety regulations[44]. Corporate Governance and Shareholder Information - The company proposed a final dividend of €0.06 per share for the fiscal year 2018, totaling €153,529,440, which was approved by shareholders on April 30, 2019[62]. - As of June 30, 2019, Prada Holding S.p.A. holds approximately 80% of the company's issued share capital, representing a significant controlling interest[73]. - The company has established a statutory auditor committee to oversee compliance with applicable laws and regulations[60]. - The board of directors has adopted a dividend policy aimed at providing sustainable dividend flows while considering cash flow and profitability[62].

Financial Performance - In 2018, Prada achieved a sales turnaround, reflecting a revenue growth that had not been seen in several years, indicating the effectiveness of its mid-term plans to enhance sales and profitability [11]. - The net revenue for the year ended December 31, 2018, was €1,735 million, an increase of 16% compared to €1,499 million in the previous period [13]. - EBITDA for the year was €265 million, a decrease of 4.4% from the previous year, primarily due to increased operating expenses [14]. - The company's gross profit margin for the year was 53.8%, down from 55.4% in the previous year [13]. - The return on equity for the year was 49.91%, significantly higher than 10.86% in the previous year [13]. - The company's net income for the year was €709 million, representing a 40.8% increase from €162 million in the previous year [13]. - Total assets increased to €3,709,780,665 in 2018, up from €3,274,876,579 in 2017, representing a growth of approximately 13.3% [69]. - The comprehensive income for 2018 was €695,445,000, compared to €158,876,000 in 2017, reflecting a significant increase of 338.5% [71]. Investments and Strategic Initiatives - Investments made during the year included enhancements to manufacturing and logistics structures in Italy, as well as improvements to central and regional offices [12]. - A broad digital transformation strategy was implemented, benefiting the company in areas such as human resources and corporate compliance [12]. - The company is investing in digital assets to enhance customer experience and improve operational efficiency across marketing, logistics, production, and customer service [23]. - The company is focused on research and development to create innovative products through the exploration of new or improved materials and design concepts [22]. - The company completed the acquisition of the remaining 20% stake in Angelo Marchesi srl on January 11, 2018, and merged three food companies under the Marchesi brand effective April 1, 2018 [120]. - The company increased its ownership in Pelletteria Ennepi Srl from 80% to 90% on December 21, 2018 [121]. Financial Position and Debt Management - The net financial debt as of December 31, 2018, was €136 million, down from €459 million in the previous year [17]. - The debt-to-equity ratio improved to 6.6% from 24.5% in the previous year, indicating a stronger financial position [16]. - Long-term financial payables decreased by €213 million due to internal loan repayments and reclassification of amounts due within 12 months as short-term payables, partially offset by €100 million in new long-term loans [21]. - The company has a total available credit line of €497 million as of the reporting date, down from €523 million at the end of 2017 [21]. - The company had an unutilized cash credit line of €497 million as of December 31, 2018, indicating strong liquidity management [155]. Corporate Governance and Board Activities - The company has adopted a board diversity policy to support strategic goals and development, considering various factors such as gender, age, and professional experience [28]. - The board held four meetings during the review period, with an average attendance rate of 86.1% [29]. - The Audit Committee held eight meetings during the review period with a 100% attendance rate, focusing on significant internal and external audit results and financial matters [44]. - The Board is responsible for establishing appropriate corporate governance policies and ensuring compliance with regulations [42]. - The company has established a supervisory organization in accordance with Italian Legislative Decree No. 231/2001 to enhance governance [43]. Risk Management and Compliance - The company faces financial risks related to currency and interest rate fluctuations, with hedging contracts established to mitigate these risks [116][117]. - The company has established derivative contracts to hedge against financial risks arising from currency and interest rate fluctuations [135]. - The company has adopted policies to ensure the confidentiality of potential inside information until timely disclosure is made [57]. - The board is responsible for the ongoing monitoring and review of the effectiveness of risk management and internal control systems [55]. Shareholder Engagement and Communication - The company maintains high transparency with shareholders, regularly engaging with institutional investors, fund managers, analysts, and financial media [63]. - The company has implemented measures to improve communication efficiency with shareholders, allowing them to choose the language and method of receiving company communications [67]. - The company’s corporate website serves as a platform for timely electronic dissemination of financial and non-financial information to stakeholders [63]. Accounting Policies and Financial Reporting - The company adopted IFRS 9 for expected loss provisions, resulting in an initial allowance of €4,723 thousand for third parties and internal calculations [127]. - The adoption of IFRS 15 resulted in an increase in current liabilities as of December 31, 2017, with a corresponding new inventory item for "returned assets" amounting to €26 million [85]. - The company recognizes impairment provisions for slow-moving and obsolete inventory, as well as for inventory valued at lower than cost [94]. - The company recognizes tax provisions based on actual estimated tax expenses at the applicable rates and laws in effect at the reporting date [114]. Employee Benefits and Compensation - The total employee benefits as of December 31, 2018, were €26.713 million, down from €30.549 million in 2017, indicating a decrease of approximately 12% [199]. - The post-employment benefits recognized as of December 31, 2018, were €18.889 million, reflecting a decrease from €20.480 million in 2017 [199]. - The average duration of the defined benefit plan was 10.4 years as of December 31, 2018, compared to 10.8 years in 2017 [200]. Market Position and Brand Strategy - The company focused on retaining brand uniqueness while modifying promotional policies for more effective product positioning [11]. - The nylon product line was revitalized, becoming a highlight of the Spring/Summer 2018 collection and a key focus of a major promotional campaign [11]. - Sponsorship of the Luna Rossa team in the America's Cup significantly increased brand exposure, with Prada also serving as the title and special sponsor for the event [12]. - The strategic decision-making for product lines increasingly emphasized the importance of creativity and appealing to the tastes of the new generation [11].

Brand Recognition and Market Presence - Prada Group reported a significant increase in brand recognition and product demand, leading to a notable rise in sales figures[10]. - Prada's strategic expansion into major cities like New York, Madrid, London, Paris, and Tokyo has solidified its international presence and brand influence[13]. - The company expanded its retail network, opening 19 new stores globally, which contributed to a 5% increase in same-store sales[66]. - Prada operates 634 directly operated stores in prime locations of major international shopping centers, contributing approximately 82% of total sales from retail channels[41][47]. - The company has maintained a diverse workforce, leveraging cultural differences to understand market changes effectively[49]. Product Development and Innovation - The company expanded its product line, introducing women's footwear in 1979 and entering the men's market in 1993, which contributed to overall revenue growth[13]. - The introduction of the "Linea Rossa" leisure product line in 1997 marked a significant addition to Prada's portfolio, appealing to a broader customer base[13]. - The unique integrated business model of Prada allows for the transformation of innovative fashion ideas into commercially viable production while maintaining quality standards[37]. - The introduction of new product lines, particularly in sneakers and backpacks, has resonated well with the younger generation, enhancing brand appeal[76]. - The company plans to invest €200 million in new product development and technology enhancements over the next two years to strengthen its market position[66]. Financial Performance - Prada Group reported a significant increase in revenue, achieving €3.1 billion in 2018, representing a 7% growth compared to the previous year[66]. - Prada's operating profit reached €600 million, reflecting a 10% increase year-over-year, driven by strong demand in Asia and the Americas[66]. - The company reported a total of €197.6 million in dividends paid during the year[93]. - The net income for the year was €205,443 thousand, a decrease from €248,925 thousand in 2017, reflecting a net income margin of 6.5%[74]. - The gross profit margin decreased to 72.0% in 2018 from 73.5% in 2017, with gross profit amounting to €2,262,594 thousand[74]. Sustainability and Environmental Commitment - Prada has committed to sustainability initiatives, with plans to reduce carbon emissions by 30% by 2025[66]. - The group has implemented energy-saving action plans, including the construction of 10 photovoltaic power stations and the installation of energy-efficient LED lighting, contributing to multiple LEED certifications for its factories and stores[54]. - The company is developing solar energy projects and purchasing 100% certified renewable energy, reinforcing its commitment to reducing environmental impact[54]. - The group’s environmental policy is a key element of its ethical code, focusing on sustainable development practices[135]. - The company emphasizes ethical values and compliance with laws in all countries where it operates, reflecting its commitment to corporate governance[134]. Corporate Governance and Leadership - Miuccia Prada and Patrizio Bertelli are co-founders and current CEOs of the company, with Miuccia serving as the chairperson since November 2003[113]. - The board includes independent non-executive directors with extensive experience in finance and law, enhancing corporate governance[116]. - The company has maintained a stable leadership structure with key executives being re-elected in April 2018[113]. - The board's composition reflects a commitment to diverse professional backgrounds, including finance, law, and academia[117]. - The company emphasizes the importance of risk management and internal control systems, which are continuously monitored by the board[184]. Market Strategy and Consumer Engagement - The company has a strong focus on innovation in communication strategies, particularly in digital and social media, to enhance brand image and customer relationships[47]. - Prada's participation as a sponsor in the 36th America's Cup in 2018 highlighted its commitment to brand visibility and engagement in high-profile events[18]. - The brand's collaboration with international directors for short films has enhanced its cultural presence, contributing to brand visibility and engagement[64]. - The company integrates its direct retail and e-commerce strategies to monitor sales performance across different markets in real-time[47]. - The focus on digital transformation is expected to significantly change the relationship with consumers, emphasizing the importance of communication for effective promotion[110]. Workforce and Talent Development - As of December 31, 2018, Prada employed 13,556 staff from 107 countries, with women making up 62% of the workforce[49]. - Prada Academy is established to cultivate talent and ensure future growth, focusing on craftsmanship, retail training, and corporate training[49]. - The average tenure of production staff at Prada is 20 years, ensuring a high level of expertise and knowledge retention[40]. - The company emphasizes the importance of employee health and safety, maintaining a very low accident rate in production facilities, with no strikes reported in the year, similar to 2017[50]. - The group has implemented a long-term incentive plan to retain key personnel essential for its expansion in the fashion and luxury goods sector[99].