Prada insured against "hysteria" of luxury slowdown

Italian fashion house Prada SpA (1913.HK) has dismissed 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 line with the expectations. "I think we need to stay calm and less hysterical. Marriage I not such a dramatic market," said Patrizio Bertelli, CEO of the manufacturer, minimalist dresses that competes with the likes of Louis Vuitton (LVMH.PA) and PPR SA (PRTP. PA) Gucci. Comments on a conference call for analysts, after Britain Burberry Group Plc (BRBY.L) come the 11th September's sales in China was much slower than expected, spooking investors luxury raises concerns about the sector as a whole is in danger of tripping. 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 for the first half of the sixth of the year on August, 28 new branches opened by closing the two, bringing the total number of operating stores to 414 at the end of 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.