Prada Group’s revenues grew 13 per cent year-on-year in the first quarter ended 31 March 2025 to €1.34 billion, the company said on Wednesday.
“I’m happy to have reported these numbers, but the market is not easy. We see irregular times, so it’s not easy to give an intelligent answer to current trading status,” said group CEO Andrea Guerra on a call with investors. “This is a very peculiar year, a very complicated year. We will continue to fight, we will continue to remain in a positive environment for both brands.”
Last year was a record year for Prada Group, which emerged as one of the few winners amid a wider slowdown in the luxury market. In April, Prada Group announced its plans to acquire Versace. The deal is expected to close in the second half of 2025, subject to regulatory approval. But the most recent quarter shows that momentum may be starting to slow. “For sure, this last almost 24 months has not been easy, and recently, I would say that maybe we have reached [our] lowest plateau,” Guerra said.
The Prada brand’s retail sales were flat, missing analyst consensus by 1.74 per cent. Miu Miu reported 60 per cent growth in retail sales, despite a tough comparison (the brand almost doubled its year-on-year sales growth each quarter in 2024). Guerra had warned investors throughout last year that he did not expect Miu Miu’s spike to last forever, and that the focus was on creating long-lasting and sustainable growth.
The brand’s revenues spiked 105 per cent in Q3, but analysts are sceptical about how long it can last.
Group retail sales were up 13 per cent to €1.22 billion, driven by like-for-like full-price sales. Wholesale was up 7 per cent year-on-year to €96 million.
Sales in the Asia-Pacific region were up 10 per cent. Guerra said Chinese consumers were volatile, though the slowdown among this consumer group was primarily with local transactions, while travel transactions remained positive. Europe was up 14 per cent, driven by both domestic and tourist spending. Sales in Japan grew 18 per cent despite a tough comparison, while sales in the Middle East grew 26 per cent. The Americas saw 10 per cent growth despite volatility in the market. Guerra was positive about the US, but told investors he anticipates a weaker dollar and that market uncertainty may impact US consumers.
Guerra commented on the strength of the euro compared to the dollar and Chinese yen with regards to the group’s pricing strategy: “We have talked about our maintenance pricing strategy of between two to four points every six months, and we have not yet decided what to do in June and July, and by that time we will also need to understand what happens with tariffs. We will have to do certain things on pricing for sure, but I do not know the exact amount today.”
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