Prada outperforms the luxury market average

Prada continues its winning streak. In the first quarter of 2024, the group outperformed the luxury market average, with constant-currency revenue increasing 16% year-on-year to 1.187 billion euros (+11% at current exchange rates). Retail sales reached 1.071 billion euros, up 18% year-on-year, driven by like-for-like growth and higher full-price volumes. Leading the charge was the Miu Miu label with a remarkable 89% increase in retail sales to 233 million euros, while the flagship Prada brand also performed above the market average with retail sales up 7% year-on-year to 826 million euros.

«The group is on a strategic development path, investing to achieve sustainable long-term growth», Patrizio Bertelli, chairman and ceo of the group, explained. «Our first-quarter performance was solid despite a more challenging market environment. We must remain flexible and agile, adapting to ever-changing industry dynamics while continuing to innovate and invest, backed by the strength of our organization and the talent of our people».

At the product level, Prada highlighted the success of its men’s and women’s fall-winter 2024 fashion shows, as well as the introduction of new leather goods, such as the Buckle Bag, which enriched the brand’s offerings along with the ongoing reinterpretation of iconic products. During the quarter, Prada’s focus on its Re-Nylon collection underscored the Brand’s commitment to sustainability. For Miu Miu, both apparel and leather goods continued to receive a very positive response from customers, thanks to new lines and iconic pieces supported by targeted campaigns. Collaborations with Church’s, another group brand, which closed the quarter with a 22% increase, reaching 7 million euros and New balance, contributed to further strengthening the brand’s identity.

«We started the year on a positive note», ceo Andrea Guerra added. «Prada achieved solid growth in the first quarter, outperforming the market average, despite a tough comparison base. Miu Miu’s performance is the result of an effective strategy and disciplined execution. We are continuing our journey toward retail excellence by enhancing our product offerings and focusing on deeper customer engagement to maintain brand desirability. Even as we face new industry dynamics, we are committed to achieving consistent, sustainable growth that outperforms the market average».

Looking at markets, the Asia-Pacific region continued to grow, with retail sales up 16% at constant currency to 396 million euros. Europe showed robust growth, with sales increasing 18% to 295 million euros, while the Americas saw a modest increase of 5%, totaling 181 million euros. Japan experienced the strongest growth, increasing by 46% year-on-year to 145 million euros, driven by local consumer demand and an influx of tourists. The Middle East also recorded steady growth, with sales up 15% year-on-year to 54 million euros. This balanced performance across markets and products extended to the beauty segment.

During the analyst conference, Guerra shared his optimism about the company’s long-term prospects. «Prada is among the top two global brands in eyewear (licensed to EssilorLuxottica, ed.). Although we might not reach the same status in beauty, our first two years with L’Oréal have exceeded expectations. Our fragrances are performing well, with Paradoxe for women and Luna Rossa for men leading the way. Our goal is for consumers to connect with the Prada brand on multiple levels». Regarding Miu Miu’s extraordinary growth, which is on track to become a billion-dollar brand, Guerra remarked that «it is unrealistic to maintain such high growth rates, but we can find the right market positioning while preserving strong profitability». On the dual listing, he stated that it is on their agenda but not a current priority. The positive performance in the first quarter continued into April. (All rights reserved)