Prada Group Q1 sales soared to over $1.16B

Dive Brief:

Prada, which has just started releasing quarterly data, reported a net revenue of $1.16 billion (1.06 billion euros) for its first quarter, a 22% year-on-year increase.
“China returned to be an engine of growth, driving a solid sales rebound in Asia Pacific,” Andrea Guerra, who was appointed CEO of Prada Group in January, said in a statement. Retail sales in the Asia-Pacific region were up 22% year over year.
Demand has been consistently high for both the Miu Miu and Prada brands, with Miu Miu posting 42% sales growth year-over-year, while Prada retail sales grew 21%. A management shakeup earlier in the year could signal a change in direction for the buzzy brands.

Dive Insight:

In December, Prada founder Miuccia Prada and husband Patrizio Bertelli announced plans to step back as co-CEOs of Prada Group. Lorenzo Bertelli, the couple’s son, is expected to take over as group CEO of the family-run business as early as 2024, at which point Patrizio Bertelli will become chairman.

Miuccia Prada plans to remain on as creative director of Miu Miu and co-creative director of Prada, alongside designer Raf Simons. Simons joined the company in 2005 as creative director of Jil Sander, which was then owned by the Prada Group.

Also in December, Gianfranco D’Attis was named CEO of the Prada brand. Attis, who took up his position in January, was formerly president of Christian Dior Couture Americas. He’ll be reporting to Guerra, who was formerly with Luxottica. Miu Miu CEO Benedetta Petruzzo, who left Kering Eyewear to join the company in 2020, will stay in her current position.

Prada Group has flourished at a time when some of its luxury competitors, including Kering, are struggling to find footing. “We closed a first quarter of solid growth, across all product categories and geographies, and we continued to consolidate our brands’ desirability,” Patrizio Bertelli said on a conference call with investors and analysts. “The global context we operate in continues to be complex and ever-changing, but our strategic priorities are clear, our organization stronger, and the group remains reactive.”

This week’s results mark the first time Italy-based, Hong Kong-listed Prada has issued a first-quarter trading update. The company is working toward increased transparency and regular updates to investors as it weighs the possibility of a dual listing in Europe.