Ending discounts did wonders for Prada’s bottom line (Miguel MEDINA)

Milan (AFP) – Italian luxury group Prada said Thursday its decision to stop offering end-of-season discounts at its stores had helped boost its performance, as it posted a sharp rise in net income.

“Our strategic decision to stop seasonal markdowns and to rationalize the wholesale channel has been well received by the market,” Patrizio Bertelli, CEO of the Milan-based group, said in a statement.

Net profit rose 56.5 percent in the first half to 155 million euros ($171 million).

“Full price retail sales increased across the main geographies and product categories. We believe that improving consistency in pricing will reinforce the relationship with customers and enhance product value,” Bertelli said.

Revenue at the fashion group rose 2.0 percent, in line with market expectations.

It posted an operating profit of 152 million euros.

Sales in Europe, the Americas, mainland China and Japan were all up, while social unrest in Hong Kong hurt sales there.

Prada sales rose in 2018 for the first time in four years after Bertelli and Miuccia Prada set out to rejuvenate the brand.

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.