Handbags, Cost-Cutting Drive Prada SpA Profits To Fivefold Gain in 2005

[sonya]

Handbags, Cost-Cutting Drive Prada SpA Profits To Fivefold Gain in 2005
By Luisa Zargani, WWD, August 2, 2006

MILAN — Prada SpA said Tuesday that growth across the board, in all its brands in all markets, coupled with cost-cutting helped propel the luxury group to a fivefold increase in net profits in 2005 on a 10 percent rise in sales.

 

[goodmornin]

what kind of cost-cutting did they do??/

hopefully none to do with quality!!

 

[BoyAboutTown]

^ Well, the sale of the Helmut Lang and Jil Sander labels. Also they've been producing many of the Linea Rossa (Sport) line products everywhere but Italy! I've seen shirts made in Romania selling for $300.

 

[melisande]

That's interesting.

I actually do think there *are* some quality issues in the Prada sports line, and, of course, it is overpriced, even given that the clothes have got a great cut.

The high-end line -- quality seems to remain high.

 

[ValleyO]

^ Well, the sale of the Helmut Lang and Jil Sander labels. Also they've been producing many of the Linea Rossa (Sport) line products everywhere but Italy! I've seen shirts made in Romania selling for $300.

What Prada did to Jil Sander and especially Helmut Lang is atrocious- Sander was driven out of her own company and Helmut Lang was completely shut down.

 

[BoyAboutTown]

What Prada did to Jil Sander and especially Helmut Lang is atrocious- Sander was driven out of her own company and Helmut Lang was completely shut down.

Totally agree. Now Raf Simons is designing it, I really dislike his style (the mens s/s 07 show was nasty, who would wear something like that?!?) Helmut Lang was recently sold to a Japanese company, and the "designers" formerly worked for a jeans brand!