Prada reports strong growth for the first nine months of 2023. Against an uncertain macroeconomic backdrop, the Milan-based luxury goods group, listed on the Hong Kong stock exchange, is enjoying strong demand in Europe and Asia.
Prada is doing better than its competitors. The Italian luxury group has announced impressive financial results for the first nine months of 2023. Overall sales climbed 17% to 3.34 billion euros, mainly due to strong demand in Asia and Europe, its two main markets.
Retail sales were boosted by 17% at constant exchange rates, to 2.98 billion euros, thanks to a 13% increase in revenues at Prada and a 49% rise at Miu Miu, the main brand’s little sister, which targets a younger clientele.
Wholesale sales were up 6%.
Prada “maintained a solid growth trajectory in the third quarter, underpinned by strong sales at constant prices”, commented CEO Andrea Guerra, who took over the reins of the group in January. Miu Miu “once again recorded an excellent performance across all geographic regions and product categories”, he added.
The ready-to-wear segment recorded exceptional growth of 32%, ahead of the footwear department with an increase of 16%, and leather goods, which grew by 8%.
“Our strategy delivered solid growth in the first nine months of 2023, including the third quarter, despite a very challenging basis for comparison. The Group continued to consolidate the desirability of its brands and accelerated its investments as planned,” commented Patrizio Bertelli, Group President and Executive Director
Deceleration in the United States
In terms of retail sales by region, the American continent was the only one to record a slight decline of -1%, representing sales of 536 million euros. This stagnation comes against a backdrop of rising interest rates and a general economic slowdown, factors which have affected many players in the sector.
Conversely, Japan posted the most impressive growth, with a 47% increase in sales to 334 million euros.
Asia-Pacific stood out as the most dynamic market, with a 21% increase in revenues, topping the billion euro sales mark.
In Europe, sales rose by 17% to 941 million euros, thanks to “strong local demand and tourist flows”.
To continue reading this article, subscribe or log in to your account
Discover our plans
- Every day, keep up to date with the latest business news from the world of luxury.
- Receive the essential luxury business news by email every week
- Access all our events
- The Luxury Journals and Luxus Magazine in print and digital versions
Subscribe for 1€
Become an active member of the community of luxury leaders.
Read also>PRADA PREFERS DUAL LISTING TO M&A
Featured photo : ©Prada
