The Prada luxury group has announced an impressive double-digit increase in sales for the first quarter. The brand’s retail sales also increased, outperforming the market average.
Prada, the Italian luxury group, announced on Wednesday April 24 an impressive increase in sales for the first quarter of the current year. This remarkable performance is attributed to a remarkable increase in sales of its Miu Miu brand.
Prada’s total sales thus reached 1.19 billion euros in the first quarter, slightly exceeding analysts’ consensus of 1.14 billion euros.
“In the first quarter, we delivered a solid performance in a more challenging market environment,” said Chairman Patrizio Bertelli.
Prada’s retail sales, adjusted for constant exchange rates, increased by 7%, placing it “above the market average”.
Prada maintained its appeal thanks to the warmly received Fall-Winter 2024 men’s and women’s fashion shows. The introduction of new leather goods, such as the buckle bag, further enriched this category, while continuing to reinterpret the brand’s emblematic icons. The brand’s commitment to sustainable development was reaffirmed throughout the quarter, with the focus on the Prada Re-Nylon collection.
Very strong growth for Miu Miu
Prada’s sister brand, Miu Miu, which targets a younger clientele, recorded remarkable growth of 89%, representing around 15% of total sales.
Leather goods were very well received by customers, with good performances from new lines such as Ivy and Softy, as well as icons such as Arcadie and Wander, supported by dedicated campaigns. Collaborations with Church’s and New Balance also helped boost Miu Miu’s identity. In addition, special events intensified exchanges with the Miu Miu community worldwide.
“Miu Miu’s strong performance is testament to the disciplined strategy and execution implemented over the last few years,” said Andrea Guerra, Group CEO.
Asia and Japan flourish
In Asia-Pacific, Prada’s main market, retail sales rose by 10% to 396 million euros, a growth rate that rises to 16% when adjusted for constant exchange rates. In Japan, sales rose by a remarkable 29%, the strongest performance ever, driven by tourist purchases.
Sales in Europe rose by 14% to 295 million euros, thanks to local demand and tourism.
Sales in the Middle East also enjoyed robust growth of 14%, while in the US the increase was just 4%.
Better performance
“The Prada Group has had a positive start to the year. In the first quarter, Prada achieved solid, above-market growth on a high quarterly comparison basis,” added Andrea Guerra.
This performance contrasts with the slowdown observed in the luxury sector. On Tuesday April 23, Kering announced a 40% to 45% drop in operating profit for the first half of the year, as a direct consequence of lower sales in the first quarter.
Meanwhile, French luxury heavyweight LVMH reported a slowdown in organic growth to 3% for the same quarter.
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Featured photo : © Prada
