PRADA spa

PRESS RELEASEPRADA SPA APPROVES GROUP RESULTS TO 31 JULY 2014

THE GROUP CONFIRMS MEDIUM-TERM GROWTH STRATEGY

Milan, 19 September 2014 – The Prada SpA Board of Directors today examined andapproved the Consolidated Interim Report for the six months ended July 31, 2014.
Despite the difficult political and macroeconomic environment and unfavorable forex
trends throughout the period, the Prada Group continued to prioritize long-term growthobjectives with investment aimed at increasing brand value. At the same time, it sought
to reduce short-term pressure on margins with measures to contain costs across theGroup.
Consolidated net revenues
Consolidated net revenues totaled € 1,751.3 million, a 1.3% increase (+4.5% atconstant exchange rates) on the € 1,728.1 million reported for the first half of 2013.
Wholesale channel
The rationalization of the wholesale channel is close to completion and sales in thatchannel grew by 1.3% (+1.8% at constant exchange rates) to reach Euro 288.7 million.
Retail channel by geographical area
The retail channel, which currently represents more than 83% of consolidated sales,
also recorded growth of 1.4% at current exchange rates and 5.1% at constant exchange
rates. Even though they were penalized by unfavorable exchange rates, the 566 Directly
Operated Stores (DOS) generated sales of Euro 1,442.2 million.
The Asia Pacific area shows a 2.1% decrease at current exchange rates but overall
growth of 2.1% at constant exchange rates. Performance remains weak in Korea, Hong
Kong and Singapore while China has accelerated with 11.8% growth at constantexchange rates and other Asian markets have maintained healthy rates of growth.

PRADA spaThe Americas market shows some positive signs, sustained by both domestic
consumption and a greater contribution from tourist spending.

The Group’s retailchannel recorded 8.2% growth at current exchange rates and 14.2% growth at constantexchange rates in this geographical area.
Europe remains penalized by weaker tourist flow and by the negative general economic
environment which has hit domestic consumption.

Sales fell slightly at constantexchange rates.
Sales on the Japanese market again grew strongly despite the expected slowdown inpurchases after the VAT increase at the beginning of April: +9.8% at current exchange
rates, +19.5% at constant exchange rates.
The Middle East has done extremely well with growth in the first half of the year
standing at +16.1% at current exchange rates and +21% at constant exchange rates.
Retail channel by brand
Prada, which represents around 83% of Group sales, achieved 4.6% revenue growth atconstant exchange rates and 0.9% growth at current exchange rates. The Men’s
segment performed particularly well, in line with Group strategy focused on achieving
growth for men’s collections in all geographical areas.
Miu Miu continued to grow with a +7.1% increase at constant exchange rates (+2.9% atcurrent exchange rates). Except in Europe, the brand continues to record excellent rates
of growth on all markets.
Church’s also did well with +12.4% growth at constant exchange rates (+13.8% atcurrent exchange rates), as did Car Shoe with +3.6% growth at constant exchange rates(+2.7% at current exchange rates).
Retail channel by product category
Clothing and footwear performed well with growth of 18.3% and 22.6%, respectively, atconstant exchange rates (+13.9% and +18.8% at current exchange rates). Meanwhile,revenues from sales of leather goods decreased by 1.4% at constant exchange rates (4.9% at current exchange rates), mainly because of a decrease in tourist footfall in themain shopping destinations in Europe and Asia since their spending is more oriented

PRADA spa

towards this product category.
Margins
Margins for the period were conditioned by the unfavorable forex trends and by thebroadly stable level of revenues which was insufficient to absorb the increase in costs
due to retail network expansion: 75 new store openings in the last twelve months,including 41 Prada, 29 Miu Miu and 5 Church’s.
EBITDA amounted to Euro 492.8 million, or 28.1% of consolidated net revenues.
EBIT totaled Euro 373.2 million or 21.3% of consolidated net revenues.
Net profit was Euro 244.8 million or 14% of consolidated net revenues.
Patrizio Bertelli, Chief Executive Officer of Prada Spa, commented: “Despite the current
scenario is not showing signs of improvement and the difficult economic and geopoliticalconditions are negatively influencing consumers attitude, we remain confident that theluxury goods market – especially the high-end segment where the Prada Group operates
with success – will continue to offer interesting growth prospects in the medium-term. In
recent years, we have been dedicated to the development of a balanced, global retailnetwork, which has enabled us to establish a direct connection with our customer baseand increased the value of our brands. The position now reached by the Group on theluxury goods market constitutes a solid base for medium-term growth of revenues andmargins. We shall pursue such growth, paying ever greater attention to excellence,
through a focused investment policy and the constant monitoring of costs.”
For further information, please contact:
Prada Press OfficeTel. 02.541921
e-mail: ufficio.stampa@prada.com
PRADA Group
The PRADA Group –HKSE Code: 1913 – is one of the world leaders in the luxury goods sector where it
operates with the Prada, Miu Miu, Church’s and Car Shoe brands in the production and distribution of luxury
handbags, leather goods, footwear, apparel and accessories. The Group also operates, under licensing
agreements, in the eyewear, fragrance and mobile telephone sectors. Its products are sold in 70 countries
worldwide through 566 directly operated stores (DOS) at July 31, 2014 and a select network of luxury
department stores, independent retailers and franchise stores.