MILAN – The Prada Group ended 2024 with a strong set of results, reporting gains in revenues and profitability, growth across all its key markets and a record year for Miu Miu, which saw a 93 percent increase in retail sales.
In the 12 months ended Dec. 31, group revenues rose 15 percent to 5.43 billion euros, compared with 4.72 billion euros in 2023. At constant exchange rates, they were up 17 percent.
Net profit climbed 25 percent to 839 million euros compared with 671 million euros in 2023.
The group reported a healthy balance sheet with a net cash position of 600 million euros, soaring up from 197 million euros in 2023.
“We are pleased to see that our strategy continued to deliver above-market performance, notwithstanding the challenging environment,” said Patrizio Bertelli, Prada Group chairman and executive director. “This success underscores the enduring relevance of our brands, which comes from an unwavering focus on product innovation, quality, craftmanship and a unique ability to read contemporaneity. Drawing on multi-year investment initiatives across industrial capacity and know-how, our manufacturing platform and our people continue to be a differentiator in an ever-evolving sector that demands quality, agility and efficiency.”
Bertelli also underscored the group’s “strong link with culture and creative dynamism” that allows it to expand its boundaries, citing Luna Rossa’s participation in the 37th Americas Cup and the partnership on technology and design with Axiom Space to design the new NASA lunar spacesuits for the Artemis mission.
“Our group and its organization have strengthened over the past years and notwithstanding the uncertainties around us, we have entered 2025 with confidence continuing to work and invest for long-term sustainable growth,” concluded Bertelli.
Last year, operating profit was up 21 percent to 1.28 billion euros, with margin further expanding at 23.6 percent.
Gross margin increased 14 percent to 4.33 billion euros compared with 3.8 billion euros.
Group retail sales amounted to 4.85 billion euros, up 16 percent compared with 4.2 billion euros in 2023, driven by like-for-like, full price volumes. The fourth quarter also showed growth, as revenues at constant exchange rates rose 18 percent.
Retail sales of the Prada brand were up 4 percent at constant exchange rates in 2024, sustained by all categories and by a consistent like-for-like growth trajectory supported by a well-balanced category mix.
Miu Miu continued its stellar growth, up 93 percent, lifted by all categories and regions.
Miu Miu’s Chinese New Year campaign.
Courtesy of Miu Miu
“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,” said Andrea Guerra, group chief executive officer. “We continued to make progress in terms of brand desirability, retail productivity and strength of our organization, with disciplined and rigorous execution across the board. Over the year, Prada confirmed its solid growth trajectory and Miu Miu reached a whole new level of visibility and scale, driven by a well-diversified total look offering. Looking forward, while being mindful that the complex industry dynamics are likely to persist, our priorities remain unchanged.”
He remarked on the “clear opportunity to continue to drive market share” at Prada, while eyeing consolidation for Miu Miu. To that end, the group “will continue to sharpen the positioning of our brands, to enrich product portfolios and to foster customer engagement. Our investments across retail, industrial capabilities and technology will continue to support our growth and the organization in its evolutionary journey. For the year ahead, we retain our ambition to deliver solid, sustainable, and above-market growth,” Guerra said.
The group saw double-digit growth in Asia Pacific, Europe, Japan and the Middle East. Business in the Americas improved sequentially, showing double-digit growth in the second half of 2024.
Retail sales in Asia Pacific rose 11 percent to 1.6 billion euros, despite the challenging market conditions in the region. Business improved in the fourth quarter across all main areas.
Sales in Europe rose 17 percent to 1.53 billion euros, supported by both domestic and tourist spending.
The Americas progressed positively throughout the year, up 8 percent to 830 million euros, entering double-digit territory in the second half.
Japan was the best performing region in 2024, growing 36 percent to 656 million euros, boosted by domestic and tourist spending. At constant exchange rate, sales rose 46 percent.
The Middle East also achieved a solid performance throughout the year, up 26 percent to 227 million euros.
Capital expenditure totaled 493 million euros. In 2023, capex amounted to 753 million euros.
