Prada recorded a strong year in FY22 despite the challenging trading environment in China. Prada’s enduring brand popularity led sustained strong demand and better pricing power. The favourable price/channel mix resulted in stronger-than-expected profitability. The gross margin reached 78.8%, ahead of the mid-term target set in 2021. We believe the recovery in China and a higher contribution from elevated product will continue to boost the group’s top-line and margin in the new year.