PRADA(HK:01913)2023-03-31 08:55Company Operations and Structure - Prada Group operates over 612 directly operated stores and employs more than 13,700 staff globally[10]. - The company has a presence in over 70 countries, selling luxury goods through various channels including direct e-commerce and selected department stores[10]. - The company has established 24 production facilities worldwide, enhancing its operational capabilities[10]. - Prada Group operates 612 directly operated stores in prime locations of major international shopping centers, serving as a strategic asset for brand promotion and sales monitoring[47]. - As of December 31, 2022, Prada Group employed 13,768 individuals from 113 countries, with women representing 63% of the total workforce[55]. - The company has 24 production facilities, with 21 located in Italy, ensuring high-quality craftsmanship and flexibility in production processes[46]. - Prada Group's structure includes various subsidiaries across multiple regions, including retail operations in the Middle East, Europe, and Asia[77]. - Several subsidiaries, including PRM Services S. de R.L. de C.V. and Prada Maroc Sarlau, are currently undergoing liquidation processes[78]. - The company maintains a strong retail presence in key markets such as Dubai, London, and Tokyo, with 100% ownership in many subsidiaries[77]. Sustainability and Ethical Practices - Prada Group's mission emphasizes sustainable development as a core part of its business strategy[13]. - The group announced a zero-fur policy for all brands in 2019 and joined the Fashion Pact, promoting sustainability in the fashion industry[20]. - The establishment of a new sustainability committee in 2022 led to the creation of a new ethical code and human rights policy applicable across the group[20]. - Prada Group's commitment to sustainability includes the establishment of a sustainability committee in early 2022 to oversee environmental and social initiatives[54]. - Prada has transitioned to using Re-Nylon, a sustainable material, and has committed to a fur-free policy since the Spring/Summer 2020 collection[59]. - The Group became a founding member of the Re.Crea Consortium in 2022, aimed at managing waste textiles and promoting innovative recycling solutions[59]. - Prada's "Sea Beyond" educational project, launched in 2019, raises awareness about sustainable development and marine protection, with funding linked to sales from the Re-Nylon collection[59]. - The group has identified significant ESG risks including climate change, human rights, and occupational health and safety, and plans to enhance control systems to integrate ESG considerations into business strategies[133]. - The board approved a new ethical code in July 2022, which includes commitments to environmental protection as a key element[172]. - The company focuses on long-term relationships with suppliers, ensuring adherence to high ethical standards and quality requirements[174]. Financial Performance - Prada Group reported a net income of €469,155 thousand for the year ending December 31, 2022, representing an 11.2% margin on net revenues, compared to €295,103 thousand and an 8.8% margin in the previous year[138]. - The company reported a total equity of €255,882,400, equivalent to 2,558,824,000 shares at €0.10 per share[81]. - The company achieved a net income of €465,193, a 58.1% increase from €294,254 in the previous year[85]. - The gross profit margin improved to 78.8%, compared to 75.7% in the previous year, reflecting a strong operational performance[85]. - Adjusted EBIT for the year was €845,176, which is 20.1% of net revenue, up from 14.8% in the previous year[86]. - Prada Group reported a net revenue of €4,200.7 million for the fiscal year 2022, representing a 24.8% increase compared to the previous year, with a fixed exchange rate growth of 21.3%[91]. - Retail sales net amount reached €3,736.97 million, reflecting a 27.5% increase at current exchange rates and a 23.8% increase at fixed exchange rates[92]. - The company closed 40 stores, including 24 Church's stores due to restructuring, resulting in a total of 612 stores as of December 31, 2022[93]. - The total capital expenditure for the year was €276.1 million, with significant investments in store redesigns and technology projects[107]. - The net financial position improved, with a net financial surplus of €534.9 million as of December 31, 2022, compared to €237.7 million in 2021[109]. Innovation and Product Development - Prada Group's innovative approach has led to the introduction of new business models and direct control over production processes[15]. - The company aims to enhance brand value and recognition over time, focusing on creativity and transformation[10]. - Prada launched its first fragrance, Paradoxe, in collaboration with L'Oréal in 2022, marking a significant expansion in luxury beauty products[20]. - The group introduced the Eternal Gold jewelry collection, made from 100% certified recycled gold, furthering its commitment to sustainability[20]. - The company has invested significantly in training and passing on craftsmanship skills to younger generations through the Prada Academy[46]. - The company is committed to innovation in product development, particularly in eyewear and fragrance licensing[162]. Marketing and Brand Strategy - Prada Group's marketing strategies leverage fashion shows and advertising campaigns to enhance brand visibility and engage with international customers[53]. - The company has streamlined its wholesale channels over the past few years, focusing on selective partnerships with department stores and multi-brand retailers[53]. - Prada Group's e-commerce platform enhances customer experience and complements physical stores, reflecting a multi-channel strategy[47]. - The company aims to enhance stakeholder value by combining economic profitability with employee and customer satisfaction, while respecting ethical and environmental values[172]. Leadership and Governance - The board of directors includes key figures such as Andrea Guerra (CEO) and Patrizio Bertelli (Executive Director), ensuring experienced leadership[81]. - The company appointed Andrea Guerra as CEO in January 2023, marking a significant governance change aimed at further developing the Prada Group[90]. - The company emphasizes the importance of sustainability and corporate social responsibility in its strategic initiatives, as highlighted by the expertise of its board members[155]. - The management team has extensive experience in the fashion and luxury goods industry, with key personnel holding significant positions in various companies prior to joining Prada[165][166]. Community Engagement and Social Responsibility - The company made charitable contributions totaling €3,959,250 in 2022, an increase from €2,891,906 in 2021[176]. - Prada Group's flagship store in Shanghai serves as a cultural activity center, reflecting the company's commitment to historical preservation and cultural engagement[64]. - The Prada Foundation hosted ten research exhibitions at its Venice site since 2011, focusing on contemporary art and cultural discussions[65]. - The group has established an industrial compliance committee since 2010 to oversee compliance with international and local legal standards[171].