Prada aims higher as Miu Miu sales jump and Versace deal expands portfolio
By
Bloomberg
Prada SpA reported better-than-expected sales at the start of the year, outperforming a sluggish luxury sector with robust growth at its Miu Miu brand.
The Hong Kong-listed group said Wednesday that first-quarter net revenue rose 13% at constant exchange rates, slightly ahead of analyst forecasts. Miu Miu, favored by younger consumers, saw retail sales soar 60% year-over-year.
Despite a challenging global backdrop, Prada aims for above-market growth in 2025. The company acknowledged that economic uncertainty and trade tensions continue to weigh on demand for luxury goods. Its stock is down about 20% year-to-date.
By contrast, LVMH—the owner of Louis Vuitton—reported disappointing sales this month, citing weak demand in China and the U.S. Hermès International SCA also noted a soft start to the year in China, while Gucci struggled to rebound under Kering SA, with no clear turnaround in sight.
Prada, however, reported regional growth across the board, led by strong performance in the Middle East and Japan.
In a major strategic move, Prada this month announced the acquisition of Versace for approximately €1.25 billion ($1.4 billion). The deal, the largest in Prada's 112-year history, brings a brand with a markedly different aesthetic into its fold, enhancing its brand portfolio and competitive positioning.
While analysts responded positively to the purchase, attention now turns to Prada's strategy for revitalizing Versace.
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