Prada was established to hold a leading portfolio of luxurious manufacturers, just like the Gucci team and LVMH. Prada purchased 51% of Helmut Lang's firm located in big apple for US$40 million in March 1999. Lang's organization was really worth about US$100 million. Months later on, Prada compensated US$105 million to get total control of Sander A.G., a German-based company with once-a-year earnings of US$100 million. The purchase gained Prada a foothold in Germany, and months afterwards Jil Sander resigned as chairwoman of her namesake firm. Church & Business, an English shoes maker, also came under manage of Prada, when he bought 83% of the organization at US$170 million. A joint venture between Prada and the De Rigo group was also formed that year to produce Prada eyewear.
Prada took on debts of Fendi, as the latter company was not doing well financially. These acquisitions elevated to the top of the luxury goods market in Europe. Revenue tripled from that of 1996, to L 2 trillion. Despite apparent success, the organization was still in debt.
The company's merger and purchasing sprees slowed in the 2000s. However, the firm signed a loose agreement with Alaia. Skin care products in unit doses were introduced in the United States, Japan and Europe in 2000. A 30-day supply of cleansing lotion was marketed at the retail price of US$100. To help pay off debts of over US$850 million, the business planned on listing 30% of the business on the Milan Stock Exchange in June 2001. However, the offering slowed down after a decline in spending on luxury goods in the United States and Japan. By 2006, the Helmut Lang, Amy Fair Clough, and Sander labels were sold.
Prada is still recovering from the Fendi debt. More recently, a 45% stake of the Church & Business brand has been sold to Equinox. Prada is the main buyer from the Turkish leather factory DESA, which was found guilty by the Turkish Supreme Court of illegally dismissing workers who joined a union. The Clean Clothes Campaign, a labor rights organization based in Europe, has called on to ensure that freedom of association is respected at the factory.
On December 16, 2011 Prada's stock has lost 32 percent from its July 27, 2011 record, worse than Hang Seng Index as a benchmark which has lost 19 percent in the same period. Prada gets more than 42 percent of sales from Asia, mainly China which dropped 32 percent from their July peak. "The golden time, or the high-growth period, for many luxurious goods retailers is probably over." According to the Organization for Economic Cooperation and Development, China will grow 8.5 percent in 2012, the lowest pace in 11 years.
Prada took on debts of Fendi, as the latter company was not doing well financially. These acquisitions elevated to the top of the luxury goods market in Europe. Revenue tripled from that of 1996, to L 2 trillion. Despite apparent success, the organization was still in debt.
The company's merger and purchasing sprees slowed in the 2000s. However, the firm signed a loose agreement with Alaia. Skin care products in unit doses were introduced in the United States, Japan and Europe in 2000. A 30-day supply of cleansing lotion was marketed at the retail price of US$100. To help pay off debts of over US$850 million, the business planned on listing 30% of the business on the Milan Stock Exchange in June 2001. However, the offering slowed down after a decline in spending on luxury goods in the United States and Japan. By 2006, the Helmut Lang, Amy Fair Clough, and Sander labels were sold.
Prada is still recovering from the Fendi debt. More recently, a 45% stake of the Church & Business brand has been sold to Equinox. Prada is the main buyer from the Turkish leather factory DESA, which was found guilty by the Turkish Supreme Court of illegally dismissing workers who joined a union. The Clean Clothes Campaign, a labor rights organization based in Europe, has called on to ensure that freedom of association is respected at the factory.
On December 16, 2011 Prada's stock has lost 32 percent from its July 27, 2011 record, worse than Hang Seng Index as a benchmark which has lost 19 percent in the same period. Prada gets more than 42 percent of sales from Asia, mainly China which dropped 32 percent from their July peak. "The golden time, or the high-growth period, for many luxurious goods retailers is probably over." According to the Organization for Economic Cooperation and Development, China will grow 8.5 percent in 2012, the lowest pace in 11 years.
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