Dive Brief:
- Prada Group revenue rose 8% to 2.7 billion euros, or about $3.1 billion, for the first half of fiscal 2025, according to a Wednesday release.
- Group retail sales rose 8% to 2.5 billion euros for the period, while wholesale sales fell 2% to 220 million euros, and royalties rose 10% to 67 million euros. Every region reported sales growth.
- Miu Miu also reported growth, albeit at a slightly slower pace than in the previous quarter. The brand posted a 40% year-over-year retail sales increase in Q2 and 49% overall growth for H1. Meanwhile, retail sales at the Prada brand fell 3.6% in Q2 and 1.9% in H1. Brand retail sales were posted in constant currency.
Dive Insight:
Declining retail sales at Prada underpinned the announcement that the brand's CEO Gianfranco D’Attis was exiting the company by mutual agreement, effective June 30. D’Attis spent just over two years in the role, and Prada Group CEO Andrea Guerra will succeed him in an interim capacity until a permanent appointment is made.
In Wednesday’s release, Guerra in part attributed Prada Group’s solid second quarter performance and strong first half to the cultural relevance of the company’s brands. He added that the Prada brand “showed resilience against increasingly subdued demand dynamics and high comps,” while Miu Miu showed “sustainable growth.”
“Certain headwinds are likely to be more cyclical than structural, but it is essential to execute with focus,” Guerra said. “Looking ahead, while being vigilant and nimble, we remain committed to our strategy and to our ambition to deliver solid, sustainable and above-market growth.”
By region, retail sales in Asia Pacific were solid throughout Q2 and increased 8% to 838 million euros for the first half of the year. In Europe, the company said second quarter sales were impacted by lower tourist spending and tough comps, offset by stable local demand, which led to an overall 7% sales increase to 728 million euros in H1.
Sales in the Americas rose 10% in the first half. Japan experienced a deceleration in the second quarter after posting an 18% year-over-year uptick in Q1, leading to a 6% increase in the first half to 326 million euros.
Sales in the Middle East grew 24% to 137 million euros in the first half of the year.
“In the first half of the year we delivered a sound set of results, testament to the strength of our brands and disciplined execution,” Patrizio Bertelli, Prada Group’s chairman and executive director, said in the release. “This healthy performance was achieved against a challenging backdrop, somewhat unprecedented in our industry. We believe the structural growth opportunities remain unchanged, but we are conscious that in the short term we may continue to face a turbulent economic environment.”
