Prada Group’s net revenues grew 9% year-on-year, on a constant currency basis, to €5.72 billion in the year ended December 31, 2025.
The group unveiled its strategy for Versace during the earnings call on Thursday. The acquisition closed in December 2025, and last month, Versace named Pieter Mulier as chief creative officer. He will join from Alaïa in July, presenting his first collection in early 2027.
Versace reported net revenues of €684 million in 2025. While Prada Group said it expects Versace’s turnaround to negatively impact the topline, it has taken actions to save on operating expenses through post-merger synergies. The consolidation is expected to dilute the group’s EBIT margin in 2026, with some improvement thereafter.
Prada Group scion and Versace chair Lorenzo Bertelli said the turnaround “won’t be an overnight task”, but is excited about the potential of the brand as well as its place in the Prada Group portfolio. “We started this journey counting on a lot of factors: first of all, Versace’s remarkable and longstanding awareness; second, its diversified client base, which has limited overlap with Prada and Miu Miu’s customer base; strong legitimacy in haute couture, menswear, womenswear, and across product categories; and its strong cultural relevance and brand equity,” Bertelli said.
Ahead of Mulier joining, Versace will pursue two initial turnaround pillars. The first is to “continue to assess the current collection and product lines, to identify areas of improvement in terms of quality and structure”, Bertelli said. The second will focus on channels and distribution, brand positioning, and moving toward quality full-price sales.
From 2027 onward, Bertelli said all of these areas will be brought together to create long-term desirability. It was announced that the house’s couture line, Atelier Versace, will be rebooted under Mulier. “The collection will continue to evolve as we progress to reposition the brand and [relaunch] special projects like Atelier Versace,” he added.
“We will also continue with the network optimization as we progressively rationalize the off-price channel and the markdown practices, while focusing on driving in-store productivity with self-help initiatives across retail execution,” Bertelli continued. Prada Group CFO Andrea Bonini added that he is keen to “clean up” the collections, by discontinuing all sub-brands such as Versace Jeans Couture. Bertelli also noted opportunities to vertically integrate Versace’s supply chains within the group’s manufacturing network.
Miu Miu ahead
On the call with investors, the group highlighted it had achieved five consecutive years of growth, despite a market slowdown over the past two. From last year to this year, gross profit improved from €4.34 billion with a margin of 79.8%, to €4.59 billion with a margin of 80.3%.
2025 was an “interesting journey” for the company, CEO Andrea Guerra said on the earnings call. The group explored new ways of working, including using AI, improving storytelling and store design, and expanding hospitality (the group opened its first standalone restaurant in Asia, Mi Shang Prada Rong Zhai, which is in Shanghai). “We did not only perform solidly, but we continued investing in our people, in their know-how, in their motivation,” Guerra said. “We have continued investing in our strategic digital plans and AI tools, as well as in the desirability and awareness of our brands. And we were able to keep a steady profitability.”
Sales growth at the Prada brand was much slower than Miu Miu’s. Prada retail sales declined 1% in 2025, with signs of improvement in the second half of the year and positive performance in Q4. At Miu Miu — which achieved record sales growth in 2024 — sales were up 35% year-on-year.
By region, Asia-Pacific — the company’s largest market, closely followed by Europe — experienced 11% sales growth for the full year, while European sales grew 5%. In the Americas, sales grew 18% supported by local demand. Japan sales grew 3% against tough comparisons with the year prior, driven by local and tourist demand, and sales in the Middle East grew 15%. Regarding the latter, Guerra opened the call with a statement of support for employees in the region who are feeling the impacts of the war, later noting that it may impact performance in 2026 (he is monitoring the situation with regards to store closures).
Guerra closed the call with determination. “Years ago, we committed to an upgrade,” the CEO said. “We achieved solid, constant growth. We significantly improved in all our consumer-facing activities. We have seen profitability increase year by year, working capital sequentially improving, and therefore cash flow. So obviously, we are pleased with all these achievements and activities. Now, we’re entering a new journey. We’re working hard, but we will be patient. Agility and efficiency remain non-negotiable.”
