Prada is in robust health, with net profit climbing 25.5% to 383 million euros in the first half of 2024. A striking contrast with the luxury sector, largely due to the resilience of Asia and the confirmed popularity of its sister brand Miu Miu.
Prada gave the lie to the climate of anxiety that seems to be sweeping the luxury markets in the first six months of 2024, with net income up 17% to 2,549 million euros, boosted by comparable volumes and full prices.
The Italian group’s sales reached 2.5 billion euros, driven by retail sales up 14% at current exchange rates (17% at constant exchange rates).
These results, described as “positive”, showed growth “above the market average, despite an increasingly uncertain context for the sector“, said Group President and CEO Patrizio Bertelli.
A balanced, well-positioned portfolio
Prada, the group’s flagship brand, saw its sales grow by 6%, confirming its position as leader in the luxury goods market. Group CEO Andrea Guerra attributed this success to the brand’s “creative strength, distinctive positioning and disciplined execution“. He praised Prada’s balance between innovation and reinterpretation of iconic products in leather goods, ready-to-wear and shoes.
The brand benefits from hard-hitting initiatives that amplify brand values and encourage public engagement, in particular the recruitment of some high-profile ambassadors to champion the group’s sustainability strategy, epitomized by the Re-Nylon campaign and the very Hollywood faces of Emma Watson and Benedict Cumberbach.
But once again, Miu Miu, the group’s rebel brand aimed at a younger customer segment, remains the powerhouse of the transalpine group. In fact, retail sales rose by 18%, with an exceptional 93% increase in sales at Miu Miu. The brand “continued to shine thanks to the growing enthusiasm of its community, fuelled by successful fashion shows”.
The press release explains the robust performance of Prada’s sister brand by “a clear and distinctive identity, positioning and communication”. Attributes that have helped develop strong desirability across all product categories, particularly leather goods.
Highlights of the first six months included thesuccessful introduction of new bag styles such as the Ivy and the Beau, as well as the celebration of icons such as the Arcadie and Wander models. Not to mention the warm welcome given to a revisited archive piece (l’Aventure).
To achieve growth, the Italian group does not hesitate to invest, notably in the development of its production facilities to meet growing demand.
Robust results in Asia-Pacific
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Featured Photo: © Miu Miu
