PRADA spa

PRESS RELEASEPRADA SPA APPROVES GROUP RESULTS FOR
QUARTER ENDED APRIL 30, 2014
A QUARTER OF CONSOLIDATION IN THE GROUP’S GROWTH PROCESS

Milan, June 5, 2014 – The Prada spa Board of Directors today reviewed and approved
the consolidated results for the quarter ended April 30, 2014.
Analysis of revenues
Consolidated net revenues amounted to Euro 777.7 million, down by 0.6% (+3.8% atconstant exchange rates) on the Euro 782.3 million reported for 1Q13; the decrease wasentirely attributable to the wholesale channel.
Wholesale channelThe strategy of rationalization adopted in the wholesale channel will be completed in 2014and has led to a 24.7% fall in wholesale sales (-23.9% at constant exchange rates). Thisdecrease was in line with expectations, regarded all product categories and affected theMiu Miu brand to the greatest extent.
Retail channel by geographical area
In contrast, the retail channel has continued to expand and, despite unfavorable foreignexchange trends, the 551 directly operated stores generated sales of Euro 697.8 million,
up by 2.8% on the first quarter of 2013; +7.7% at constant exchange rates.
The Asia Pacific area recorded a 3.9% increase at constant exchange rates (-1.2% atcurrent exchange rates). The performance of this area was affected by a slowdown in
Korea, Hong Kong and Singapore while China, Macau and other Asian markets continue
to show healthy rates of growth.
The strong performance in the Americas must be highlighted. In spite of bad weather
conditions, the retail channel in that area achieved 16.5% growth at constant exchange

PRADA sparates (+9.5% at current exchange rates).
Sales in Europe remained broadly in line with 1Q13 with 1.1% increase at constantexchange rates (+0.2% at current exchange rates). Performance was affected mainly bya slump in the tourist footfall because of the further strengthening in Euro andgeopolitical problems in Russia.
Japan continues to perform extremely well and constant exchange rate growth stood at+30.5%. Notwithstanding the weakening of the Yen, Euro growth remained in double
digits at +17.1% at current exchange rates.
Retail channel by brand
The Prada brand achieved 7.8% sales growth at constant exchange rates (+2.8% atcurrent exchange rates) with excellent performances in Japan and in the Americas. We
must highlight the excellent results achieved by all categories of Men’s products, in linewith Group strategy which aims to develop Men’s collections in all geographical areas.
The retail performance of the Miu Miu brand was also positive, +7.3% at constantexchange rates (+1.9% at current exchange rates), with growth achieved in all
geographical areas (except Italy) and double digit growth in all important markets like
Asia Pacific, the Americas, Japan and the Middle East.
Church’s also achieved double digit sales growth of +13% at constant exchange rates(+13.5% at current exchange rates) while Car Shoe sales decreased.
Retail channel by product category
For some months now, Group strategy has favored more selective growth and a morebalanced product portfolio. This has involved giving renewed impulse to innovation in all
the collections: apparel, footwear and leather goods.
As a result of these measures, apparel and footwear have achieved 19.4% and 20.9%
growth, respectively, at constant exchange rates (+14.1% and +16.2% at currentexchange rates) while sales of leather goods, which in the last two years have grown by
64% (from Euro 1.426 million in 2011 to Euro 2.333 million in 2013), are broadly in linewith 1Q13, +2.2% at constant exchange rates (-2.6% at current exchange rates).

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Profitability
Revenue stability and unfavorable foreign exchange trends have had a temporary impact
on profit margins in 1Q14:
EBITDA amounted to Euro 213.9 million, or 27.5% of consolidated net revenues.
EBIT stood at Euro 156.3 million, or 20.1% of consolidated net revenues.
Net profit was Euro 105.3 million, or 13.6% of consolidated net revenues.
Thanks to cash flows generated during the quarter, the net financial position improvedby Euro 53 million to stand at a positive Euro 349 million, after capex for the quarter ofEuro 117 million.
Patrizio Bertelli, Chief Executive Officer of Prada Spa, commended: “When presenting
our results for 2013, we stated that our objective for 2014 would be to consolidate theposition of the Prada Group at the top of the luxury goods segment with industrial,marketing and retail investments, primarily aimed at reinforcing business know-how, thequality of our products and relations with our customers. We do not believe that thecurrent difficult macroeconomic environment, made all the more complex by unfavorable
foreign exchange trends, will impact the plans for corporate growth presented to themarket as these plans are geared towards the Group’s expansion in the medium/longterm. The trend of solid growth maintained in the retail channel confirms that we havemade the right strategic decisions and encourages us to continue along our currentpath.”

For more information 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 design, production and distributionof luxury handbags, leather goods, footwear, apparel and accessories. The Group also operates, underlicensing agreements, in the eyewear, fragrances and mobile telephone sectors. Its products are sold in 70

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countries worldwide through a network that included 551 directly operated stores (DOS) at April 30, 2014
and a select network of luxury department stores, independent retailers and franchise stores.