Companies

Prada posts robust growth in sales and profits

Jul 31, 2023 Italy

The Italian-based luxury group posted a 17% net revenue growth and a 62% net income increase in the first half of 2023, as compared to the same last year's period. Rebound in Asia continues

“Q2 was another positive quarter on top of a solid Q1. Retail growth continued to be driven by like-for-like full price sales, with Prada remaining on a sound trajectory and Miu Miu reporting a remarkably strong performance, thanks to a strengthened identity and increasing visibility. The Group's profitability further increased while we continued to consolidate our brands' desirability with higher investments”, commented Andrea Guerra, Group Chief Executive Officer.

First Half Results

In the first half of the current fiscal year, Prada Group's net revenue grew by 17%, or by 20% at constant exchange rates, reaching 2.23 billion euros, on a comparable basis to the same half of 2022, recording a double-digit growth across all product categories (up by 12% in the leather goods segment, up by 36% in the ready-to-wear segment, and by 20% in the footwear segment).

The company noted that the retail channel “continued to be the engine of growth during the semester”, with retail sales amounting to 1.98 billion euros, up by 18%, or 21% at constant exchange rates, from the same period of last year. Meanwhile, wholesale sales totalled 210 million euros in this period, up by 8%, or 9% at constant exchange rates, year-over-year.

Looking closely into the retail channel, the Prada brand recorded an 18% increase in sales in the first half of 2023, while Miu Miu's sales soared by 50% in this same period, “with the second quarter in further acceleration at +57% versus the +42% of the first quarter”, on a comparable basis to the first half of the prior year.

By region, in the first semester of the year, Prada group's retail sales rose by 21%, or 25% at constant exchange rates, in the Asia Pacific region, “thanks to the acceleration in mainland China, Hong Kong and Macau, supported by the low basis of comparison of 2022”, and by 38%, or 49% at constant exchange rates, and in Japan, where the company capitalised from a strong brand appeal, solid domestic demand and increased tourism flows.

The group's first half performance was also positive in Europe, which registered a sales growth of 20%, or 24% at constant exchange rates, “supported by healthy local demand and high levels of tourism”, and the Middle East, with sales up by 15%, or 14% at constant exchange rates, as compared to a similar half of 2022. In North America, Prada Group's retail sales development was flat.

In addition, the Prada Group stressed a continued profitability improvement in the first semester of the current fiscal year, as the EBIT margin widened to 22% (1H 2022: 16%) and EBIT jumped by 61% year-over-year to 491 million euros. The company's net income then reached 305 million euros, increasing by 62%, on a comparable basis to the same period of 2022.

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Italy Companies Footwear Luxury Prada Quarter Results Results