Prada restructures business  because of low sales

Prada restructures business because of low sales

16.12.2015 News

30561_20130626155421_51cae47db66c2The famous Italian fashion house Prada has decided to make adjustments  of the management of its business  because of the fact that the company’s sales began to fall. General Director of Prada Patrizio Bertelli  is going to re-equip production and hold a business restructuring.

At the end of 2013 the company’s revenues declined, while management took the decision to open new plants and to hire 400 new employees. It would help the company not only to rise, but also to expand the business. This idea had opponents, critics have argued that the decision is wrong, and such expenses are not justified, on that Patrizio Bertelli said, “You simply do not understand, I’m sure that this decision is very important to the company.”

However, the director of the Prada was wrong. Expansion led to the fact that the net profit in 2014 decreased by 28% (amounted to 450.7 million euros, while a year earlier the figure was – 627.8 million euros). Annual sales fell by 1% – to 3.55 billion euros. If compared with 2013 – Prada’s revenue rose by 9% against 29% in 2012.

At the conference on Tuesday, Prada CFO – Donatello Galli said that  there will be a cost control at all levels within the restructuring of the company. Experts point out that this decision was made in order not to repeat previous mistakes.

Bernstein analyst Mario Ortelius notes that Prada made many unreasonable costs in recent years. Such a large number of new stores that have been open for a short period, could not immediately give a profit, because they need a time for this. And as a result, the company’s expenses exceed the revenues by almost half.

In addition, eyewitnesses claim that the fashion house Prada is  wasted considerably even for new store layouts, to understand what interior fit better, the cost of such a layout is almost equivalent to the cost of the store.

In an interview Bertelli said that actually cost models for the stores were not as excessive as critics say, but he recognized the need to reduce costs.

In recent years, big brands such as Gucci and Louis Vuitton, Prada are on a “burning platform” , consumers increasingly shun big brands and prefer something a little more exclusive.

Bertelli said that at the moment he is working to improve the structure of the company. Now restructuring aims to optimize production and add more quality products in the retail network.

Source: www.wsj.com

Other articles

  • Germany has threatened to block the Telegram
    News

    Germany has threatened to block the Telegram

    In Germany, Telegram faces a fine of 55 million euros because the company does not have a contact person who would be obliged to communicate with the state to distribute content that violates the law. Der Spiegel reported this. If the company refuses to cooperate with the German authorities, the application may be blocked in […]

  • The National Bank named four factors for the growth of the hryvnia
    News

    The National Bank named four factors for the growth of the hryvnia

    Significant strengthening of the hryvnia against the dollar is due to four main factors. Vasyl Furman, Deputy Chairman of the Council of the National Bank of Ukraine, said this on the air of Ukraine 24 TV channel. “This is primarily an increase in prices in commodity markets, on the one hand, although, on the other […]

  • Ukraine is among the ten countries with the highest earnings on Bitcoin
    News

    Ukraine is among the ten countries with the highest earnings on Bitcoin

    Ukraine is in the top 10 countries with the highest earnings on Bitcoin in 2020 – Ukrainian investors received about $ 400 million in profits on cryptocurrency. The Ministry of Finance with reference to the data of the analytical company Chainalysis reported this. The authors of the rating draw attention to the obvious dominance of […]

  • The US and the EU will end the trade dispute between Boeing and Airbus
    News

    The US and the EU will end the trade dispute between Boeing and Airbus

    Authorities in the United States and the European Union have agreed to end a long-running trade dispute over the aerospace concerns Boeing and Airbus, which has resulted in mutual tariffs of more than $ 10 billion, said Catherine Ty, the US representative at the trade talks. “The US-EU agreement marks significant progress in reaching a […]

  • Microsoft has named the date of “death” of Windows 10
    News

    Microsoft has named the date of “death” of Windows 10

    Microsoft will stop supporting Windows 10 on October 14, 2025. This was reported by the company’s press service. Thurrot writes that this means the date of the “death” of Windows 10. The publication adds that the new generation of operating system, which Microsoft will present next week, will not be called Windows 10, at least, […]

  • First Radisson hotel opens in historic port city of Odesa
    News

    First Radisson hotel opens in historic port city of Odesa

    On the shores of the Black Sea, Radisson Hotel City Centre Odesa opens as Radisson Hotel Group’s 7th hotel in Ukraine in operation and under development. With an excellent location on the famous Derybasivska Street, Radisson Hotel City Centre Odesa unlocks the cosmopolitan city of Odesa, full of architectural styles, international cuisines and beautiful Black […]

  • Nvidia’s merger agreement with Arm could take more than two years because of China
    News

    Nvidia’s merger agreement with Arm could take more than two years because of China

    It may take Nvidia twice as long to get approval for its deal to buy Britain’s largest technology company, Arm Holdings, which is owned by Japanese financial conglomerate SoftBank Group. After the companies announced a $ 40 billion deal last September, the first hurdle was a class action lawsuit from Google, Qualcomm and Microsoft, which […]

  • Tesla has introduced its fastest electric car. The maximum speed of the Model S Plaid exceeds 320 km per hour
    News

    Tesla has introduced its fastest electric car. The maximum speed of the Model S Plaid exceeds 320 km per hour

    The American company Tesla demonstrated on Thursday in Fremont (California) its new electric car Model S Plaid. The presentation, led by Tesla Chairman Elon Musk, was broadcast on the company’s website. According to the businessman, critics have previously pointed out that the updated version of the Model S car will be “insanely fast”, and expressed […]

Read also

Prada restructures business  because of low sales
News

Mondelez International Company evading taxes in the UK amounting to £ 2 billion.

Sunday Times newspaper has investigated and reported as Mondelez International (formerly known as Kraft Foods)-the biggest in North America and the second largest worldwide producer of food avoid paying taxes. According to the Sunday Times, the Cadbury owner – Mondelez International Company (formerly known as Kraft Foods), legally evaded taxes in the amount of tens […]

Next
Prada restructures business  because of low sales
News

PepsiCo Showed Business Sustainability In The 2nd Quarter

On Monday, PepsiCo announced its second fiscal quarter which ended on June 30. The results exceeded Wall Street expectations but were mixed. On the one hand, sales of food and snacks increased as consumers bought snacks for breakfast and home-made goods. On the other hand, sales of beverages decreased because large sales channels such as […]

Next
Prada restructures business  because of low sales
News

TikTok sales to US companies have been postponed indefinitely

The sale of part of the social network TikTok of the Chinese company ByteDance to the American companies Oracle and Walmart has been suspended for now. Note that possible security threats from the Chinese technology giant have stopped the process of selling the platform. However, ByteDance continues to negotiate with the US intelligence services about […]

Next
Prada restructures business  because of low sales
News

JP Morgan’s net profit for the nine months fell by 39%

The net profit of one of the world’s largest investment banks JP Morgan Chase (USA) in January-September 2020 decreased by 39% compared to the same period last year and amounted to 16.995 billion dollars, according to the report of the investment bank. Adjusted earnings per share were $ 5.09 against $ 8.15 a year earlier. […]

Next
Prada restructures business  because of low sales
News

Georgian Manganese, controlled by shareholders of Privatbank, stopped the work of Chiatura manganese mine until the spring

Georgian Manganese temporarily suspends all works on the extraction and enrichment of manganese ore in the Chiatura mine (formerly JSC “Chiaturmarganets”, Georgia, Imereti). According to American Metal Market, the activities will be stopped starting from January 20, due to poor market conditions in the global markets of steel products. Stop of Enterprice , which is […]

Next
Prada restructures business  because of low sales
News

German Lufthansa has accepted a new restructuring package

German airline Deutsche Lufthansa AG on Monday took the third package of measures restructuring of business because of poor dynamic aviation market recovery, according to a press release. “Forecasts for international flights have deteriorated significantly in recent weeks. With the end of the summer holiday season, the number of passengers and bookings is declining again […]

Next
Prada restructures business  because of low sales
News

Alibaba Group will own MoneyGram

Ant Financial company within the framework of a public company Alibaba (China), announced about the final stage of the USA financial company asset acquisition procedures MoneyGram International, specializing in international trade transactions online, as reported Inventure. The Chinese side intends to complete the transaction in the third or fourth quarters of 2017, after the approval […]

Next
Prada restructures business  because of low sales
News

Zoom Video launches new end-to-end encryption for users around the world

Shares of Zoom Video Communications, which rose 716% over the past 12 months, rose 5.8% during trading on Monday, but closed with an increase of 1.23%. This is very different from the general decline in the market on Monday – major US stock indexes closed lower: the S&P 500 by 1.86%, the Dow Jones by […]

Next
Prada restructures business  because of low sales
News

Swiss Luxoft will own the Ukrainian IT-company IntroPro

International company Luxoft (the headquarters – Zug), which develops software and is engaged in the export of IT – services, announced its intentions to buy leading IT – company from Ukraine – IntroPro LLC. It is reported by Ukrainian source Inventure. With regard to the financial terms of the deal – its nuances were not […]

Next
Prada restructures business  because of low sales
News

Microsoft has frozen financing politicians in the US

Microsoft has frozen donations to American politicians who voted against Joe Biden’s approval as president after the election. This decision will be valid until 2022. In addition, Microsoft will not support state-level politicians and organizations that have tried to challenge the election results. According to Brad Smith, the president of the corporation, in the last […]

Next
Prada restructures business  because of low sales
News

Ukrsotsbank and Alfa-Bank combine their assets

Alfa-Bank intends to consolidate its Ukrainian unit with Ukrsotsbank, said the Chairman of the Board of Directors Peter Aven.  “Association of Alfa-Bank and Ukrsotsbank can take years. Various options are possible for future transactions with UniCredit in Russia”, – Quotes Bloomberg agency his  statement to journalists in Kiev. According to Aven, “Alfa-Bank” is going to […]

Next
Prada restructures business  because of low sales
News

The “IMC” Agricultural holding will build a dairy farm in the Chernigiv region

The  “Industrial Milk Company” Agricultural holding (IMC, Kiev) plans to build a dairy farm for 700 heads in the Repkinsky district of the Chernigiv region until 2018. This was announced by the  CEO of the company Alex Lissitsa. According to him, the company intends to modernize the dairy complex in the Repkinsky district in the […]

Next
Prada restructures business  because of low sales
News

American business will receive a $ 1 billion investment from Fiat Chrysler

After criticism of Donald Trump on autoenterprise facilities in Mexico, the US company for the construction of Chrysler cars decided to take only the local development of vehicles. It is reported by Ukrainian investment portal InVenture. So the company decided to create 2000 additional jobs in the United States planning to invest $ 1 billion […]

Next
Prada restructures business  because of low sales
News

For the first time, the Baltic States have given up electricity from Russia

For the first time in history, the Baltic States have completely given up electricity from Russia during the tests for the exit from the BRELL energy ring (Belarus, Russia, Estonia, Latvia, and Lithuania – ed.), Scheduled for 2025. It is noted that Latvia suspended commercial imports from Russia for two days (April 8 and 11) […]

Next
Prada restructures business  because of low sales
News

The first Ball of German economy – the most exclusive event of 2019!

On 21st of March 2019, at 7 pm, The German-Ukrainian Chamber of Industry and Commerce for the first time will get a VIP treatment for the key men, executives and stakeholders of German and Ukrainian businesses in a ball-room of Fairmont Grand Hotel Kyiv. During this exquisite event, guests will enjoy a bright ball night […]

Next
Prada restructures business  because of low sales
News

Ukraine will recover from the coronary crisis in two or three years

The Ukrainian economy will recover from the effects of the corona crisis in two or three years. This assessment of experts was published by the Ministry of Economy in a report on the impact of coronavirus on Ukraine. The agency reminded that last year the economy lost 4%, but this year GDP is expected to […]

Next
WP2Social Auto Publish Powered By : XYZScripts.com