Prada Group posts 12% nine-month sales gain and urges wealthy spend

Prada Group posted a nine-month revenue rise of 12 percent to €4.54 billion in the period ended September 30, against €4 billion a year earlier. Excluding Versace, which contributed €441 million in sales, the group's growth was 4 percent in constant currencies.

Third-quarter group revenue climbed 11 percent at constant exchange rates. Andrea Guerra, the group chief executive officer, framed the numbers less around any single quarter than around the longer view. In a quarterly conversation, he said, it is becoming complicated to say whether business is doing well.

Guerra argued the nine-month figure matters more over the long term. What counts, he said, is being able to show how desirable the brands are, how proactive the group is in the market, and what level of conversation it keeps with its best customers.

The clearest pattern, Guerra said, is that affluent clients are in great shape. The job is to target those wealthy customers and allow them to spend more on their dreams, while also capturing new clients. No industry, he added, is healthy without new clients.

Prada and Miu Miu diverge

Prada retail sales rose 2 percent at constant exchange rates to €2.41 billion over nine months and 1 percent in the third quarter, while Miu Miu grew 1 percent to €1.15 billion but fell 3 percent in the third quarter on tough comparisons. Prada was helped by the Americas and Asia-Pacific, including China, with Europe and Japan broadly stable.

A year earlier, Miu Miu had gained 41 percent over nine months and 29 percent in the third quarter. Our guide to the Prada Group brands records that its retail sales jumped 93.2% in 2024, crossing €1 billion.

Guerra said enthusiasm around Miu Miu's spring/summer 2027 show would safeguard 2027. The Asian slowdown, he noted, weighs more on Miu Miu than on Prada because Asia contributes more to the brand. Its positioning, he said, remains sharp and retail metrics robust.

The brand, he added, has grown for five straight years and almost multiplied its revenue by five, so it now needs time to digest, normalise and restart. Visibility was supported by itinerant pop-ups under the new Miu Miu Vinyl Club format and the Miu Miu Shanghai IFC lounge.

Channels and Versace

Group retail sales rose 8 percent to €3.93 billion over the nine months, with a stable third quarter against a more challenging backdrop. Wholesale climbed 33 percent to €428 million, reflecting a recovery of shipments to US department stores, Guerra said in answer to an analyst.

Royalties soared 77 percent to €178 million, boosted by eyewear and beauty licensed to EssilorLuxottica and L'Oréal respectively. Guerra said Versace's integration is on track and moving in the proper direction, with the first collections beginning to emerge.

Pieter Mulier, named chief creative officer on July 1, will introduce his first Versace designs early next year. Guerra said the team is looking at products rather than talking about ideas. No mention was made of a successor to CEO Emmanuel Gintzburger, who exited in July.

Patrizio Bertelli, chairman and executive director, said in a statement the environment remains complex and volatile, requiring focus, agility and rigorous execution. He also touted the production facility opened in Piancastagnaio, Tuscany, dedicated to leather goods.

Markets and weather

Asia-Pacific retail sales rose 10 percent to €1.34 billion, with a stable third quarter. Subdued traffic in mainland China was offset by positive trends elsewhere, particularly South Korea, Hong Kong and Macao. In China, Guerra said, the group recovered market share by improving hospitality in malls.

Europe rose 4 percent to €1.18 billion, helped by the Prada Galleria retail and hospitality project unveiled in Milan in September. The Americas climbed 29 percent to €851 million, with the third quarter up 23 percent. Japan gained 5 percent to €424 million at constant rates.

At current exchange rates, though, Japan was down 6 percent. Middle East retail sales fell 25 percent to €136 million, with a third-quarter drop of 18 percent, but Guerra said Middle Easterners are buying more at home and the outlook was positive.

Guerra also pointed to unusually warm weather as a drag, causing a sharp seasonal delay of fall/winter retail sales in the third quarter. Heavier ready-to-wear, he said, is finally accelerating in the last two or three weeks, a good signal ahead of the holiday season.

Chief financial officer Andrea Bonini, asked about a potential dual listing, said the group is aware of the potential benefits and additional requirements. It is an option worth considering from time to time, he said, but the group has no news to share on it at present.

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This briefing is published daily using an AI-powered system crafted by Worthbury's team and finely tuned to meet our editorial standards. While we continuously test and review the output, mistakes can sometimes happen. Tell us if you spot one.

Images: Delfino Sisto Legnani/Courtesy of Prada; Prada; Courtesy of Miu Miu Beauty