Dive Brief:
- Prada Group reported a 62% net income increase Thursday for H1, representing a year-over-year net profit growth of 305 million euros, or approximately $335 million, compared to 188 million euros for the same period last year.
- Prada brand retail net sales grew 18% for the period, including 15% growth for the second quarter, while Miu Miu’s retail net sales grew 50%, including a 57% second quarter growth spurt. Miu Miu in particular was boosted by higher exposure in China and Asia overall, per the announcement.
- The company started releasing quarterly data earlier this year, and its first quarterly report in May showed a net revenue of 1.06 billion euros, a 22% year-on-year increase.
Dive Insight:
For the six months ending June 30, Prada Group’s net revenues grew 17% to 2.2 billion euro year over year at current exchange rates, and every region except the Americas showed double-digit growth, also at current exchange rates. Japan made a particularly strong showing at 38% year over year, and the Asia Pacific region reached 21% growth during the same period. Meanwhile, Europe was up 20% and the Middle East was up 15%.
The Americas saw almost no change, with retail sales at 361 million euros versus 360 million euros for the same period last year, although the company said its North American client cluster has been showing strength for a prolonged period and has continued to grow throughout the period, including in the second quarter.
“The semester ends with solid results for the Prada Group, thanks to the desirability of its brands and to disciplined execution,” Patrizio Bertelli, Prada Group chair and executive director, said in a statement, adding that the company’s globally balanced distribution allowed it to grow despite evolving demand dynamics within the industry.
“We are pleased with the quality of Prada's continued growth and with the remarkable performance of Miu Miu. We will remain vigilant and nimble, ready to deal with different macroeconomic and demand scenarios that may materialize ahead. Our brands retain vast growth potential; our strategy is clear, and our reinforced organization is well equipped to execute.”
Earlier this year, the quarterly Lyst Index released a ranking of fashion’s top brands and products that placed Prada brand and its sister brand Miu Miu in the top two spots. Prada grabbed the top slot for the second time in a row, and Miu Miu’s second place ranking was the highest the brand has seen since the index began publishing in 2017.
“Q2 was another positive quarter on top of a solid Q1,” CEO Andrea Guerra added in the statement. “Prada Group’s Retail growth continued to be driven by like-for-like full price sales, with Prada remaining on a sound trajectory and Miu Miu reporting a remarkably strong performance, thanks to a strengthened identity and increasing visibility.”
Guerra added that Prada Group's profitability had increased while the company continued to consolidate its brands' desirability with higher investments.
“We are still at the beginning of our strategic journey,” he said. “We need to act with a long-term perspective, continuing to invest behind our brands, maintaining maximum focus on retail execution and productivity. For the current year, we retain our ambition to deliver solid, sustainable and above-market growth, considering a more challenging comp base in Q3, and some Covid restrictions during Q4 2022.”
Late last year, Prada founder Miuccia Prada and husband Patrizio Bertelli said they would be stepping back as co-CEOs of the family-run Prada Group, and Lorenzo Bertelli, the couple’s son, is expected to take over as group CEO of the family-run business as early as next year.
