Dive Brief:
- Prada Group reported net revenue of 3.8 billion euros, or about $4.2 billion, for the nine months ended Sept. 30, representing a 15% year-over-year increase, according to a Wednesday earnings report.
- Miu Miu retail sales were up 97% year over year for the period, including a 105% increase for Q3. Prada brand retail sales were up 4%, including a 2% rise in the third quarter.
- Group retail sales were 3.4 billion euros for the first nine months, including a 18% increase in the third quarter. That pace continued the company’s 15% year-over-year growth from H1, despite a challenging environment, per the report.
Dive Insight:
Some luxury companies are struggling against difficult economic headwinds, including LVMH, Kering, Zegna and Ferragamo, all of which recently reported earnings downturns. By contrast, Hermès reported a 10% revenue increase in the third quarter, partly due to its strong connection to its VIP clients, according to analyst Yanmei Tang from Third Bridge.
Prada Group, on the other hand, has a loyal fashion following both inside and outside VIP circles. It’s this popularity that has regularly placed both its namesake brand and Miu Miu at the top of the Lyst Index, which tracks brand heat using social media mentions, consumer searches, product views and sales, and global activity and engagement statistics.
“We are pleased to see that our strategy keeps delivering above-market performance at both Prada and Miu Miu,” Patrizio Bertelli, Prada Group chairman and executive director, said in the report. “We are operating in a challenging environment, for the entire luxury value chain.”
At Miu Miu, a combination of fashion, cinema and other arts helped create global engagement, said the company, adding that “impactful creativity and communication drove the brand’s consistent outperformance.”
Meanwhile, the Prada brand “continued to draw strength from its consistent creative identity and polyhedric brand equity,” the company said. It added that the brand’s overall performance “was supported by a well-balanced category mix, with a continuous enrichment of the Leather Goods offer, and good traction across Ready-to-Wear and Footwear.”
The overall company reported a 9% boost in the Asia-Pacific sector for the first nine months of fiscal 2024, “despite the more challenging market conditions in the region.” In Europe, 16% growth for the period was “supported by both domestic and tourist spending.” The Americas saw a 7% increase, and the Middle East was up 24%.
Regionally, the strongest area was Japan, which was up 40% for the first nine months, “driven by solid local consumption and strong tourist flows,” despite a slowdown in Q3, per the company.
“We progressed through the year with another quarter of high-quality, like-for-like growth, supporting our positive trajectory in both revenue and margins,” CEO Andrea Guerra said in the report.
He added that “despite the challenging backdrop, we are confident in our ability to navigate the industry complexities, and remain committed to our ambition to deliver solid, sustainable and above-market growth.”
