MILAN – Innovation, creativity and retail growth across all markets, as well as a big jump in Miu Miu‘s sales lifted the performance of the Prada Group in the first quarter of 2024.
The Italian luxury company on Wednesday reported a sales increase of 11 percent to 1.18 billion euros in the three months ended March 31. This compares with 1.06 billion euros in the same period last year. At constant exchange rates, revenues grew 16 percent.
“Our group continues to make strategic progress as we invest for long-term, sustainable growth,” stated Patrizio Bertelli, Prada Group chairman and executive director. “Over the first quarter, we delivered a solid performance in a more challenging market environment. In this context, we have to maintain flexibility and agility to respond to constantly evolving industry dynamics while continuing to innovate and invest across our business, leveraging the strength of our reinforced organization and the talent of our people.”
In the first quarter, the Prada brand registered a 7 percent gain in retail sales and Miu Miu was up 89 percent.
Gigi Hadid in the Miu Miu spring 2024 ad campaign
“Prada Group had a positive start to the year. During the first quarter Prada experienced solid and above-market growth against a high quarterly basis of comparison; Miu Miu’s strong performance is a testament to the strategy and disciplined execution implemented over the past years,” said Andrea Guerra, group chief executive officer. “We continue to progress in our journey towards retail excellence, enriching our product range and driving customer engagement to nurture our brands’ desirability. Sharpness of positioning, creativity and communication will be critical this year; while the industry is experiencing new dynamics, we retain our ambition to deliver solid, sustainable and above market growth.”
Group retail sales rose 12 percent to 1.07 billion euros compared with 953 million euros in the same period last year, driven by like-for-like and full-price volumes. At constant currency, retail sales were up 18 percent.
Wholesale revenues slipped 1 percent to 90 million euros, compared with 91 million euros in the same period last year.
Royalties rose 22 percent to 25 million euros compared with 21 million euros last year.
Commenting on the Prada segment, the statement touted “high brand desirability” in light of the positive reception of the fall 2024 men’s and women’s fashion shows. “The introduction of leather goods novelties, such as the Buckle Bag, further enriched the category alongside the ongoing reinterpretation of icons. The focus on Prada Re-Nylon collection throughout the quarter reiterated the brand’s commitment to sustainability.”
Miu Miu’s fall 2024 show contributed to “driving brand desirability further. Leather goods continued to be received very positively by clients, with both new lines (Ivy and Softy) and icons (Arcadie and Wander) performing well, also supported by dedicated campaigns,” the company said. In addition, Miu Miu’s collaborations with Church’s and New Balance “contributed to give further dynamism” to the identity of the brand.
“Consolidated event formats kept elevating the dialogue with the Miu Miu community worldwide,” concluded the statement, referring to projects such as the Miu Miu Women’s Tales, for example. During the Salone del Mobile in Milan earlier this month, the brand introduced its first literary club, “Writing Life,” a two-day event spotlighting the work of the late Italian writers and poets Sibilla Aleramo and Alba De Céspedes.
All geographic markets showed retail sales growth. Asia-Pacific was up 10 percent to 396 million euros despite the comparison with a quarter last year that saw the re-opening of stores after the pandemic. Revenues in Europe rose 14 percent to 295 million euros, supported by both domestic and tourist spending. The Americas were up 4 percent to 181 million euros. Sales in Japan climbed 29 percent to 145 million euros, sustained by local consumption and increasingly by tourists. At constant exchange rates, sales in Japan jumped 46 percent. Revenues in the Middle East rose 15 percent to 54 million euros.