Listen to the audio version of the article
The six-monthly report of the Prada group confirms the excellent performance of the high-end and fashion sector in particular in the first part of 2023. After the double-digit growth results of Brunello Cucinelli, Moncler, Tod’s and the large foreign groups, from Lvmh to Swatch and Richemont, the group founded by Miuccia Prada and Patrizio Bertelli, listed in Hong Kong, has exceeded 2.2 billion euros in turnover, growing by 20% compared to the first half of 2022 (in the photo above, in the final of the fashion show of the Prada men’s collection, during the Milan men’s fashion week last June).
Accelerating sales in Europe and Japan
The net revenues of the group – which owns the brands Prada, Miu Miu, Car Shoes, Church’s, Marchesi 1824 and Luna Rossa – rose by 20% to 2.232 billion euros. Retail sales, which started at 1.975 billion, grew by 21%, driven by like-for-like numbers (ie on a like-for-like basis between one semester and the next) and full price. Prada (+18%) and Miu Miu (+50%) are the brands that contributed the most to the result; by geographic area, the recovery continues in Asia Pacific with retail sales up 25%, followed by Europe (+24%) and the Middle East (+14%). Strong rebound in Japan (+49%), while the Americas suffer (-1%).
Profitability categories and indices
Double-digit growth in all product categories – leather goods (+12%), clothing (+36%) and footwear (+20%) – and continuous improvement in profitability, with an Ebit index of 491 million, equal to 22% of revenues, despite the higher investments, and a positive net financial position of 283 million.
Satisfaction of the president and executive director
Patrizio Bertelli (in the photo above), chairman and executive director of the Prada Group, commented on the half-yearly report explaining: «The solid results are linked to the high desirability of the brands and the careful execution of the strategy. Our balanced global presence allows us to capture growth even in ever-changing market contexts. We are satisfied with the quality and continuity of Prada’s growth and the excellent performance of Miu Miu – added Bertelli -. Nonetheless, we must remain alert and agile, ready to face different macroeconomic and demand scenarios that could arise in the coming months. Our brands confirm that they have great growth potential; our strategy is clear and the organization strengthened and well equipped to execute it».
Andrea Guerra’s vision
«In the second quarter the Group maintained positive trends, which followed a solid first quarter – added the managing director Andrea Guerra (in the photo above) -. Retail growth remains driven by like-for-like sales at full price, with Prada on a solid trajectory and Miu Miu making significant progress in the first half, thanks to its strengthened identity and growing visibility». On the profitability of the group. Guerra reiterated how it happened without touching the investments: «We have continued to consolidate the attractiveness of the brands with greater investments. We are still at the beginning of our strategic path: we must act with a long-term perspective, continuing to invest in brands, maintaining maximum focus on the productivity of the retail channel. For the current year, we maintain our ambition to generate solid, sustainable and above-market-average growth, considering the challenging third-quarter comparison basis and a fourth-quarter 2022 with Covid restrictions in some areas.