Prada insured against the "hysteria" of luxury slowdown

Italian fashion house Prada SpA has rejected talk of a slowdown in spending on luxury goods, you were a 59.5 percent increase in net profit and said sales in the last two months on the right track with expectations. "I think we need to stay calm and less hysterical. Marriage I not such a dramatic market," said Patrizio Bertelli, CEO of minimalist clothing manufacturer that competes with the likes of Louis Vuitton and Gucci PPR SA. Comments on a conference call for analysts come to Britain Burberry Group Plc said on 11 September Sales growth in China is much slower than expected, luxury spooking investors concerns about the sector in danger of stumbling. Luxury market in China, where luxury world powers are increasingly dependent, was hit by weaker demand than by slower growth and suppression by Beijing is located on conspicuous consumption. Prada Milan, but also famous for its colorful clothes Handbags Miu Miu Leather said he expects "a good double-digit growth" in 2012 stores open more than a year. "Today, looking at the numbers in August and September, we are confident that we will achieve the goals presented in our budget goals," said Bertelli, without giving further details. Asked about Burberry went Bertelli comment on its competitors, but said, Prada received a "soft" offer that satisfies the conditions of life in the various markets. Different needs "We believe that is wrong, given all markets at the same level. We need to accept the diversity of markets and adapt to different needs and traditions," the CEO added, Prada shares was reduced to keep costs under control. Bertelli said it expected earnings to improve Prada before interest, taxes, depreciation and amortization (EBITDA) this year. He said he would raise prices to reflect currency trends. The group's net profit for the six months to July amounted to € 286.4 million ($ 372 million) against a forecast of 290.3 million from six analysts polled by Thomson Reuters. First half EBITDA increased by 49 percent to € 469.4 million, or 30 percent of net revenue. Own brand of the company and Miu Miu were the main driver of growth, with sales up 40.4 percent and 23.7 percent. The market for the Asia-Pacific higher growth, more than a third of total sales Prada. Sales increased in China rose 50.2 percent to € 334.6 million. Analysts tend to Prada leather heel stable than clothing in an economic downturn and expect the company ahead of the competition because of its strong positioning in handbags and more small store network. Prada said it would continue to focus on the expansion of the retail network, which it sees as essential to the long-term growth, even if the market conditions remain difficult. Prada, the revenues of 1.55 billion euros in the first half, August 6, has 28 new stores opened by closing the two, bringing the total number of stores operated in 414 in late July. Listed in Hong Kong, Prada shares have gained 71 percent so far this year, exceeding significantly the benchmark Hang Seng Index, the percentage to 12. The advantage of the company, were released after the market close in Hong Kong.