Shares in Prada surged 20% today after the Italian luxury goods maker said it had stemmed a slide in sales in the second half of 2017 and it expected to see growth continue this year.
Criticised as slow to respond to new trends, Prada has seen profit fall since 2014 even as competitors such as Kering and LVMH have boosted sales.
The company's core profit dropped 7.3% last year to €588m.
But today, the company said that its new products, estimated to be about 60% of its total offerings, as well as robust demand from Chinese consumers, had helped to pull the company out of a 'grey area', it said.
Alessandra Cozzani, Prada's chief financial officer, said in a conference call that the firm had seen double digit organic sales growth in Greater China in the second part of the year and the first month of 2018.
Prada generates over 30% of revenue from Chinese consumers at home and abroad.
It is seeking to burnish its brand in China with a new residence project in Shanghai for fashion shows and exhibitions, and is putting more effort into e-commerce, an area where it has lagged rivals.
Analysts said that Prada is one of the few luxury brands available to invest in Hong Kong which helped spur its dramatic gains.
