Prada's new modesty

I am happy that Jil Sander is back and I am sure that the business results will benefit.'s Patrizio Bertelli, Prada CEO and husband of designer Miuccia Prada, the lesson learned: One of Jil Sander may be - even if the majority shareholder has - what to do, otherwise it is going. And, without running the presence of the company founder, the business is bad in the Hamburg Nobel tailoring.
20 million euros had been well known for his gruff manner businessmen already have invested in late 2001 to carry on after the argument with his boss to be able to design. Nevertheless, the once highly profitable company closed last year with a loss of 26.3 million euros.

A loss that Bertelli highly inconvenient, as well as the Prada Holding, one of Europe's largest luxury groups, is under pressure. After a bad 2001, the sales last year dropped again by 3.6 percent to 1.57 billion euros. One reason is that by terror, war and now SARS-induced consumption slowdown. It makes creating the whole fashion industry, particularly hits the top designers. But Prada's problems are homemade.

Spurred by the worldwide success of his own labels, Bertelli was the late nineties to expand aggressively pushed forward. Within minutes, the former belt manufacturer bought up his empire, including the Austrian designer Helmut Lang, the fashion house Byblos, Genny, a part of Fendi, the Church's and Car Shoe brands shoes and just the Jil Sander AG.

But instead of dropping profits, caused by the acquisitions in a difficult market after 11 September 2001, only costs. Some brands such as Fendi and Byblos Bertelli pushed off again, a portion of Church's place in spring this year a new owner. Several times a Prada wanted to go to the stock market to get rid of debt that had grown into weddings to over one billion Euro. But the banks were advised again. The announced for summer 2002 IPO was canceled at the last minute and earliest postponed to 2005.

Since no one assumes that the luxury market will recover in the near future, Bertelli had to rethink now. The new motto of the once great conqueror called to order in small things. Sophisticated extras are first deleted. Thus, the passionate sailor Bertelli announced, not even participate in his red and white at the Americas Cup yacht Luna Rossa. At least 90 million euros would have flowed more last year in the preparations for the exclusive Regatta.

Also, the debt is gradually progressing. On Monday, Prada sneakers announced promptly after five years, a 129.1 million euro to have paid off heavy borrowing. The biggest surprise for the fashion world might be, but it's obviously managed to self-made man from Arezzo to find the right words to lure Jil Sander returned to her company. "I'm sure they will find the motivation and resources to express their ideas and express their creativity," says Bertelli. A new beginning, which is hopefully temporary.