No, I did not come up with the damning headline (we’ve got Vogue UK to thank for that), but it sure makes for interesting reading (the article, not the headline). According to the report, the Prada group (which also owns Miu Miu, Car Shoe and Church’s) saw their profits drop 22%. Bag Snob’s Kelly goes further and adds that ‘they might be facing the end if they do not figure something out quickly‘.
The PPR group (which manages Balenciaga, Bottega Veneta and YSL) saw a dip of first-quarter sales which could have been worse if not for Gucci, which saw a 10% increase in sales during the same period.
On the other hand, ‘Burberry reported growth of more than 20% for the past six months trading today’, with CEO Angela Ahrendts crediting ‘intensified innovation in core outerwear and accessory categories‘ as one of the key reasons of their success.
Now while I’m no analyst (I probably need to get Joe to crunch the numbers), I will say this. In the last six months I bought nothing from Prada, but a bag each from Balenciaga, Burberry and Gucci.
Interesting, no? And what have you bought lately?