Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Prada's heir designate vows to keep group in family hands

Stock MarketsNov 25, 2021 02:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A logo of luxury goods company Prada is seen at the entrance of a shop in Brussels, Belgium July 2, 2021. REUTERS/Yves Herman 2/2

By Lisa Jucca

VALVIGNA, Italy (Reuters) - Lorenzo Bertelli, the eldest son and heir designate to Prada (OTC:PRDSY)'s Chief Executive Patrizio Bertelli, vowed to keep the family-controlled luxury fashion group independent when he takes the reins https://www.reuters.com/business/pradas-ceo-says-could-hand-over-reins-son-3-yrs-time-2021-11-18 in a few years, he told Reuters.

Lorenzo Bertelli, a 33-year old former rally driver, is currently Prada's marketing chief and has helped bolster the group's digital business, which aims to account 15% of retail sales in the medium term from just 2% before the pandemic.

At an investor presentation https://www.reuters.com/business/retail-consumer/prada-sets-45-bln-euros-revenue-goal-boost-e-commerce-2021-11-18 last week, his father officially crowned him as his successor, saying he could hand over to him in three to four years.

Earlier this year, Patrizio Bertelli described Lorenzo as a "key element in the turnaround of the group" that he and his wife, top fashion designer Miuccia Prada, put in place to revive sales.

The revamp strategy, which has focused on moving Prada upmarket by eliminating mark-downs and cutting wholesale distribution, has paid off and Prada is often cited by rival groups as an attractive potential prey.

However, like his father, Lorenzo Bertelli said the Hong Kong-listed group - in which the family has an 80% stake - was not up for sale.

"This is a question for my parents but for me, absolutely yes," he said in an interview that will air in full at the upcoming Reuters Next conference on Dec.1, when asked whether he wanted to keep the group in the hands of the family.

"I do not see other directions, also because I hope to have still a long path ahead and so I have to do something with my life. So I would like to stay independent," he added, speaking at the group's industrial headquarters and prototyping centre in Valvigna, in Tuscany.

He did not rule out acquiring other brands, saying there were no opportunities for the time being, but "tomorrow we do not know."

And he dismissed, at least for the time being, the possibility of the group's main labels - Prada and the younger line Miu Miu - selling on Amazon.com (NASDAQ:AMZN), which is seeking to lure prestigious luxury names to its platform.

"We tried with one of our smallest brands (Car Shoe) just to have a try," he said. "We don't think at the moment Amazon is ready for the bigger brands ... We don't see either Prada or Miu Miu on the Amazon platform at the moment."

Instead, he reiterated that Prada could be interested in taking a stake in a joint e-commerce venture that Cartier-owner Richemont and U.S.-listed online retailer Farfetch (NYSE:FTCH) are discussing.

Richemont said earlier this month it was in advanced talks with Farfetch about selling it a minority stake in its online business Yoox Net-a-Porter (MI:YNAP). It added it would also invite other firms to participate in turning YNAP into an industry-wide platform with no overall controlling shareholder.

A direct investment in the platform "could be an opportunity," Bertelli said.

The group last week unveiled a medium-term goal of raising its operating profit margin to 20% of sales, below that of bigger competitors like Louis Vuitton or Gucci and Prada's own profitability margin of 27% in its heyday.

Bertelli said that in the long term the group could go back to that kind of profitability level. But he said Prada preferred to give itself reasonable goals and when possible do even better, rather than aim too high and risk disappointing.

To watch the Reuters Next conference please register here https://reutersevents.com/events/next/

Prada's heir designate vows to keep group in family hands
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email