Revenue at Italian luxury group Prada (1913) rose 3 percent at constant exchange rates in the first quarter, excluding the contribution of Versace, with double-digit sales growth in the Americas offsetting weakness in Europe and the Middle East.
Group revenue totalled 1.4 billion euros in the January-March period, broadly in line with an analysts' consensus compiled by Visible Alpha.
Sales accelerated in March, in particular, and continued to rise this month, excluding the impact of the Middle East crisis, CEO Andrea Guerra told analysts.
Versace, which Prada acquired last year and is in the process of integrating and re-launching, contributed 143 million euros to quarterly revenue.
The Italian group said that Versace, which recently hired Pieter Mulier as its new creative director, performed in line with expectations.
Miu Miu, a smaller label that last year drove the group's revenue growth, slowed its pace and its sales rose by 2.4 percent in the quarter.
"The group delivered another quarter of growth in a disrupted environment and against the most challenging comparison base of the year," Guerra said in a statement, adding that the group aims to deliver above-market growth.
Retail sales grew 15 percent at organic level in the Americas, supported by strong local demand, and were up 5 percent in Asia Pacific, driven by China and South Korea.
Europe was down 6 percent due to weaker spending by travellers but also a modest decline in local demand. However, the managers said they have seen "encouraging signs in terms of travel spending" recently.
Sales in the Middle East region dropped 22 percent due to the Iran war. The conflict also impacted other regions, as tourists from the Middle East and Asia found it more difficult to travel.
Reuters
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