Italian luxury company Prada SpA has laid out a new plan to spur growth by more than doubling its menswear business over the next few years and expanding Miu Miu, its second line, which has been eclipsed by the group’s namesake brand.
The fashion house, which is based in Milan but listed in Hong Kong, will also push Church’s, the U.K.-based men’s shoe maker, and open more stores for its brands.
As other luxury companies suffer from a slowdown in China and anemic economic growth in Europe, Prada—one of the world’s hottest fashion brands—continues to chalk up strong growth under Chief Designer Miuccia Prada.
The company said Wednesday that its 2013 revenue rose 9% compared with the previous year to €3.59 billion ($4.95 billion). Currency fluctuations, particularly in Japan, dragged on net profit last year, which rose to €628 million from €626 million in 2012.
Speaking in Milan, Chief Executive Patrizio Bertelli laid out plans to achieve 9% revenue growth this year and 11% the following year. Mr. Bertelli and the Prada family own 80% of the company’s shares.
He plans to open 50 new stores dedicated to menswear globally over the next three years, with a goal of doubling menswear revenue from the €800 million the division recorded last year. Menswear has been enjoying a renaissance in the fashion world of late, as men become more fashion-conscious and brands search for new pockets of growth in an increasingly competitive luxury market.
Meanwhile, Prada reported that the emerging markets were the main drivers of growth last year. Sales doubled in the Middle East to reach €91.1 million, while they grew 11% in the Asian-Pacific region—boosted in particular by Greater China, where sales rose 12%. Even in Europe, which has been a dire market for many luxury groups, sales rose 5%, while the Americas posted an 11% sales increase.
Earnings before interest and tax, or Ebit, grew 6% compared with the previous year, at €939.2 million. Earnings before interest, taxes, depreciation and amortization stood at €1.14 billion last year, up 8.6% compared with a year earlier.
Mr. Bertelli told investors Wednesday that he and the Prada family could consider selling an additional 5% stake in the company, although the majority owners have yet to discuss the issue.
Read more at The Wall Street Journal.