Dive Brief:
- Prada Group posted net revenue of 5.43 billion euros, or about $5.7 billion, for fiscal 2024, up 15% year over year, according to a Tuesday press release. Group net income was up 25% to 839 million euros.
- While the group doesn’t release detailed revenue figures for its individual labels, it reported a record 93% year-over-year retail growth for Miu Miu and 4% retail growth for the Prada brand.
- The company’s retail channel grew 16% for the year “driven by like-for-like, full price volumes,” per the release. There was double-digit growth in every region served except for the Americas, which grew 9% year over year to 830 million euros.
Dive Insight:
Prada Group’s growth continued to outpace the rest of the market in 2024 amid an industry-wide luxury deceleration that is predicted to last until at least 2027.
Competitors, including Brunello Cucinelli, Ralph Lauren Corporation and Hermès, also have complicated the slowdown narrative with strong year-over-year revenue increases, but they have not matched Prada Group’s growth trajectory.
“We ended 2024 with very positive results across our brands, marking four consecutive years of double-digit, like-for-like growth, coupled with margin expansion and cash generation, resulting in a very sound balance sheet,” Prada Group CEO Andrea Guerra said in the release. “We continued to make progress in terms of brand desirability, retail productivity and strength of our organisation, with disciplined and rigorous execution across the board.”
Guerra said that while the Prada brand has shown solid growth trajectory in 2024, Miu Miu “reached a whole new level of visibility and scale.”
According to the Lyst Index, which ranks fashion’s most desirable brands based on consumer behavior, Miu Miu was the world’s hottest brand for three out of four quarters last year. The Prada brand was consistently one of the top three brands in Lyst’s rankings.
By region, company-wide retail sales in Asia Pacific grew 11% to 1.6 billion euros in 2024, with sales improving in the Q4, per the release. Japan in particular grew 36%, to 656 million euros, which Prada Group attributed to a combination of strong domestic and tourist demand.
Retail sales in Europe also benefited from domestic and tourist spending, and grew 17% to 1.5 billion euros. Sales in the Middle East grew 26% to 227 million euros.
Prada Group did not release revenue forecasts, but Guerra said that the company’s investments in retail, industrial capabilities and technology would continue to support growth. He added that in the year ahead, the company was optimistic about its ability to deliver solid, sustainable, above-market growth.
“Looking forward, while being mindful that the complex industry dynamics are likely to persist, our priorities remain unchanged,” Guerra said. “At Prada, we have a clear opportunity to continue to drive market share, while at Miu Miu we shall consolidate its success; to do that, we will continue to sharpen the positioning of our brands, to enrich product portfolios and to foster customer engagement.”
