Prada sets to want to achieve 4.5 billion euros in revenue by 2020, to boost e-commerce
The company says it expects to grow its revenue by 40% by further focusing on online exposure and increasing profitability across all parts of its retail business.
At an investor presentation, a Milan-based company said retail sales in the three months to September grew by 18% compared to the same period in 2019. That marked an acceleration from the 8% growth seen during the rest of this year.
This target is great compared with the company’s plan for 2019. The revenue goal for this year is 3.2 billion euros and it posted record sales of 3.6 billion euros in 2013.
In 2017, Prada’s sales fell as many shops opened in other countries. It was still able to reach over 2 billion euros worth of sales, indicating that the company is doing well overall.
The family-owned group recently reaped the fruits of a strategic revamp and they are now targeting an operating profit in 2019 that exceeds 20% of total sales. It is also aiming to increase the proportion of online sales over the next five years and double it to 15% of retail revenues.
The plan is to more effectively distribute products and increase online penetration.
The company said it had less than a 10% debt figure at the end of Q3, and that profitability improved further over this period.
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