Companies

Prada reports strong first half

Aug 1, 2024 Italy

In a challenging macroeconomic environment, the Italy-based luxury group has reported a 17% first half revenue growth as compared to the same period of last year. Miu Miu continues to shine

“The solid results recorded in the first half of the year reflect the strength of our brands and the disciplined execution of the Group’s strategy. We are satisfied with the above-market performance and high-quality, like-for-like growth trajectory that we have achieved in an increasingly uncertain market environment. The flexibility of our organisation gives us confidence in the Group’s ability to navigate the months ahead, as we continue to invest across our business”, concluded Patrizio Bertelli, Prada Group Chairman and Executive Director.

First Half Results

(on a constant currency basis)

The group’s revenue reached 2.55 billion euros in the first half of the year, reflecting growth of 17%, as compared to the same period of fiscal year 2023. Retail sales contributed 1.98 billion euros to the total revenue, up by 18%, and wholesales sales contributed 225 million euros, up by 8%, as compared to the first half of last year.

Focusing now on retail sales. In the first semester of the current year, the Prada brand recorded a 6% increase in sales over the same period of the previous year, with a 5% increase in the second quarter. Thanks to a “very positive commercial response across all categories”, Miu Miu stood out with a 93% increase in sales in these six months and a 95% rise in the second quarter.

Japan was the best-performing region in the semester. “Supported by healthy local demand and strong tourism flow”, the group’s retail sales rose by 55% year-on-year to 309 million euros. In the Asia Pacific region, the group performed well, albeit at a slower pace in the second quarter, with first half retail sales up by 12% year-on-year to 774 million euros.

In the first half of the year, Prada group’s retail sales in Europe increased by 18% year-on-year to 682 million euros and by 7% year-on-year in the Americas region to 387 million euros, the latter showing a sequential improvement over the second quarter. In the Middle East, despite geopolitical tensions, its revenue was up by 20% year-on-year to 110 million euros.

At the end of June, the luxury group’s EBIT increased to 575 million euros from 491 million euros in the same period a year ago, with the EBIT margin expanding accordingly to 22.6% from 22.0%. In the end, the group’s first half net income was 383 million euros, as compared to 305 million euros.

Image Credits: harpersbazaar.com

Italy Luxury Prada Quarter Results Results