Prada sees revival in Hong Kong, China markets after reporting 2016 profit drop

Prada SpA said it is now firmly back on track for growth after reporting a recovery of its business in Hong Kong and mainland China last year.

The Hong Kong-listed company also vowed to make all its brands, from Miu Miu to Church’s, ready for order on its new online stores by the end of 2017, and to open Prada and Miu Miu pop-up stores across the world as part of its ongoing business overhaul.

The Milan-based fashion house is the latest among global luxury behemoths to paint a rosier picture on the outlook, on the back of rejuvenation signs in the Greater China market.

On Tuesday, industry bellweather LVMH, the conglomerate that owns Louis Vuitton, Celine and Dior, saw its shares hit a record high in France after it booked a 13 per cent jump in first-quarter revenue, boosted by robust demand in China for its Louis Vuitton handbags and designer coutures.

Britain’s Burberry and Switzerland’s Richemont, which owns Piaget and Shanghai Tang, also said recently that their businesses returned to growth in mainland China at the end of 2016.

A “strong rebound” in mainland China emerged in the third quarter of last year and translated into double-digit sales growth in the fourth quarter, Alessandra Cozzani, Prada’s chief financial officer said in a post-earnings presentation on Wednesday night.