Prada Profit Rises 74%
Italian fashion house Prada SpA on Monday posted a 74% rise in first-half net profit, driven by strong demand in Asia--in particular China--and said it is confident of good full-year results.</br></br>Sales in Asia rose more than 35% to [euro]368 million. The company said that leather goods performed particularly well, with sales up 35.3%. Leather goods now represent more than 55% of total sales.</br></br>Deputy Chairman Carlo Mazzi said he is "quite confident Prada will deliver good results in the future," and dismissed any concerns that the company may be affected by the economic crisis in Europe and the U.S.</br></br>Mr. Mazzi said the company had seen no signs of decreasing orders or negative signs from consumers, according to data at the end of June, and noted that Chief Executive Patrizio Bertelli was positive about the future growth of the group. However, he declined to comment on whether the Milan-based luxury-apparel maker will continue to pay a dividend in 2011.</br></br>Mr. Mazzi said Prada will continue to manufacture its products around the world so it can benefit from lower costs and high quality. He cited India as an example of "a country where handmade totes can be produced maintaining the same quality level as the ones produced in Italy," but at a cheaper cost.