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Prada Group’s growth slowed in the first half of 2025 as its crown jewel, the Prada brand, suffered a slump in retail sales.
Group sales grew 9 per cent to €2.74 billion in the half-year period ended 30 June, compared with 17 per cent growth in the first half of 2024. The Milanese luxury group is faring better than some of its heftier rivals, but it is not immune to the luxury slowdown.
Sales at the Prada brand fell 1.9 per cent year-on-year in H1 2025, compared with 6 per cent growth in the same period a year prior. Second-quarter sales fell 3.6 per cent based on constant exchange rates (the company does not break out Q2 sales at group level).
Miu Miu continues to be a bright spot. Retail sales grew 49 per cent year-on-year for H1, and 40 per cent in Q2, with growth spread evenly across categories and regions. However, the brand’s explosive growth is normalising as expected: by comparison, for H1 2024, Miu Miu sales soared 93 per cent. The brand continues to drive intergenerational, high-low appeal, capturing audiences with special projects like Miu Miu Upcycled, Miu Miu Custom Studio and Miu Miu Gymnasium, alongside events like its Summer Reads book club. “The homework we need to do is keep Miu Miu where it is,” said group CEO Andrea Guerra on the earnings call. “We don’t need to be tired. We still have a journey here, and Mrs Prada and her team will continue to go down the path.”
“In the first half of the year, we delivered a sound set of results, testament to the strength of
The brand’s revenues spiked 105 per cent in Q3, but analysts are sceptical about how long it can last.
our brands and disciplined execution,” said Patrizio Bertelli, Prada Group chair and executive director, in a statement. “This healthy performance was achieved against a challenging backdrop, somewhat unprecedented in our industry. We believe the structural growth opportunities remain unchanged, but we are conscious that in the short term we may continue to face a turbulent economic environment. We remain focused on the long term with an approach that is mindful of the context. As always, our efforts are centred on the product and the client experience, while we continue to strengthen our industrial capabilities and our organisation.”
Despite some headwinds, Prada is still outpacing other luxury groups. Kering posted a 16 per cent decline to €7.59 billion for H1 2025. While LVMH sales declined 4 per cent to €39.8 billion in the same period. Hermès, like Prada, continues to weather the slowdown, with sales up 8 per cent to €8 billion for H1 2025.
Amid market challenges, Hermès said its loyal customer base — who continue to buy bags, jewellery and ready-to-wear — has allowed it to ‘hold up well in the maelstrom’.
Prada Group reported solid growth across key markets in H1. Sales in Asia-Pacific were up 10 per cent year-on-year, with the market remaining stable, according to the company. The brand also saw positive performance in Europe, up 9 per cent year-on-year. The group noted “lower touristic spending” in Q2 — a trend noted by most other major luxury players.
The Americas progressed well, with sales up 12 per cent in the first half of the year, supported by both local and traveller demand in Q2. Japan noted the most “significant deceleration”, with sales growth at 4 per cent, following exceptionally high tourism in 2024 and in Q2 in particular. This deceleration is in line with other luxury players: Kering and LVMH both saw double-digit declines in Japan for Q2 2025.
Prada Group’s gross margin grew slightly to 80.1 per cent, compared with 79.8 per cent for H1 2024, while its EBIT adjusted margin remained flat at 22.6 per cent.
The company closed the period with a net cash position of €352 million, after a dividend payment of €398 million and a capital expenditure of €294 million. In April 2025, the group announced the acquisition of Versace from Capri Holdings for €1.25 billion. The transaction is expected to close over the second half of the year, subject to regulatory approval. Prada Group would not comment on Versace, but the group has received estimates that the completion will occur between September and November 2025, Guerra said. Versace’s new creative director, Dario Vitale, will show his debut collection during an intimate event in Milan during Milan Fashion Week in September.
Despite the climate, the Prada brand continues to invest, noted Guerra. First, it invested in product and pricing structure, to give “more stretch between entry and higher prices”, he said on the call, which he feels is “correct” for the industry at this moment. That said, the high end remains the priority, the executive qualified. “We have a great opportunity to sell at higher prices. I think that that has to remain our primary objective. I think we need to prove better up there. And I think that we have been improving the way we liaise with those consumers, the way we have developed all our new stores, the level of hospitality that we’re offering.”
Prada opened Mi Shang Prada Rong Zhai, its first standalone dining space in Asia in early 2025, and expanded its retail footprint with a new specialised Prada Men store on New York’s Fifth Avenue. Prada brand CEO Gianfranco D’Attis exited the brand in June, and for now will not be replaced, Guerra said. “We will judge it in due course,” he added.
Guerra concluded: “In the current macroeconomic and geopolitical context, industry dynamics have become more challenging; this requires us to be agile and sharp on our product range, communication and overall positioning, to continue to drive client engagement and to progress in our journey towards retail excellence. While being vigilant, we remain committed to our strategy and to our ambition to deliver solid, sustainable and above-market growth.”
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