Dive Brief:
- Prada Group net revenue for the first half was up 14% year over year to 2.5 billion euros, or about $2.8 billion, according to a Tuesday release.
- Miu Miu continued to lead the company’s retail sales and showed a 93% year-over-year increase in H1, which included a 95% uptick in the second quarter. Meanwhile, Prada was up 6% for the first half.
- Global retail sales for the first half were up 15%, with Japan leading regional growth at 38% “supported by healthy local demand and strong tourism flow,” per the release.
Dive Insight:
The earnings divide between luxury companies continues to expand, as some firms flourish and others flounder in a tough period for high-end fashion. Kering, Burberry and LVMH all posted declines earlier this month, largely driven by an overall slowdown in China.
By contrast, Hermès bucked the trend with a 12% revenue increase for its first half, which included growth in every region.
As Prada Group’s growth continues its upward momentum, Patrizio Bertelli, chairman and executive director, said the strong results in H1 “reflect the strength of our brands and the disciplined execution” of the company’s strategy.
“We are satisfied with the above-market performance and high-quality, like-for-like growth trajectory that we have achieved in an increasingly uncertain market environment,” Bertelli said in the release. “The flexibility of our organisation gives us confidence in the Group’s ability to navigate the months ahead, as we continue to invest across our business.”
Sales in the Asia Pacific region were up 8% in the first half despite tough comps and increased spending outside the area, per the company. In Europe, sales grew 17%, which it attributed to spending from both locals and tourists. The Americas were up 7%, and sales in the Middle East rose 20% “despite persisting geopolitical tensions in the region,” said the company.
The company’s namesake Prada brand was helped in the first half with the release of a new Galleria bag and a new ad campaign for its Re-Nylon collection, per the release.
Meanwhile, buzz around the Miu Miu brand was driven by an extension of the company’s Upcycled program of reworked vintage pieces, as well as the launch of Miu Miu’s literary club, per the release.
Both brands have jockeyed with LVMH-owned Loewe for the top spot on the Lyst Index, which ranks the world’s hottest products and brands based on shopping behavior. While Loewe was recently in the top spot for Q2, Miu Miu and Prada nabbed first and second place, respectively, in Q1.
“The Group has successfully delivered 14 consecutive quarters of high-quality, like-for-like growth, with a positive Q2 building on a solid start to the year,” CEO Andrea Guerra said in the release. “Prada remained on a sound trajectory and Miu Miu confirmed its strong performance, with both brands capitalising on their unique identity, creativity, and positioning.”
Guerra added that the current macroeconomic and geopolitical context made industry dynamics more challenging but was nonetheless optimistic.
“While being vigilant, we remain committed to our strategy and to our ambition to deliver solid, sustainable and above-market growth,” Guerra said.
