Prada, Italy’s luxury brand, confirmed its medium-term development plans after a “good start” to 2022, however the luxury group cautioned any predictions were difficult due to the conflict in Ukraine.

Prada said earlier this month that it had discontinued its retail activities in Russia, joining a spate of other famous companies in doing so in response to the European Union and many other countries imposing tough economic sanctions on Russia in response to Moscow’s invasion of Ukraine.

Russia accounted for approximately 2% of Prada’s overall sales in 2021, the company announced on Monday.

Earnings before interest and taxes (EBIT) increased to €489 million ($535.85 million) in 2021, up from €20 million the previous year and much exceeding the €307 million reported in 2019, prior to the COVID outbreak.

According to Refinitiv, analysts predicted an operating profit of €429 million euros.

“The Prada Group has had a strong start to 2022.” “Our long-term plan remains on track,” CEO Patrizio Bertelli said in a statement, adding that he was confident in meeting medium-term targets “even though the impact of the Ukraine war on the global economy is difficult to anticipate.”

The Milan-based, Hong Kong-listed company announced a dividend of 7 euro cents per share, with a payout ratio of 61%.

In January, the design brand announced that sales last year surpassed pre-pandemic levels of €3.36 billion.

In November, the company announced a medium-term revenue target of €4.5 billion and stated that it aimed for an operating profit of 20% of total sales in the medium run.

Operating profit was 14.5 percent of total sales last year, up from 9.5 percent in 2019, before to the coronavirus epidemic.

Prada, noted for its austere designs, was in the midst of a move upmarket and online to boost sales when the coronavirus crisis struck, causing shops to close locations throughout the world and robbing them of tourist spending.

However, the family-owned company, like other luxury groups, has risen strongly from the pandemic thanks to a desire among cooped-up clients to treat themselves with high-end products.