Prada Group reports solid h1-24 with retail sales up 18% yoy and EBIT margin of 22.6%

Milan, 30 July 2024 – The Prada S.p.A. Board of Directors reviewed and approved today the consolidated financial results for the first half ended 30 June 2024.

Key highlights (growth percentage at constant currency)

Net Revenues of €2,549 mln, up 17% yoy, as strong brand identity, creativity and dynamism continued to foster desirability

Retail Sales of €2,263 mln, up 18% yoy, driven by like-for-like and full price volumes

Continued above-market performance of Prada with Retail Sales growth of +6% yoy

Miu Miu remained on a strong trajectory, with Retail Sales up 93% yoy

Double-digit growth in Asia Pacific, Europe, Japan and Middle East; further slight sequential improvement in the Americas
EBIT Margin of 22.6%, or €575 mln, notwithstanding higher investments
Healthy balance sheet with Net Cash Position of €265 mln

Patrizio Bertelli, Prada Group Chairman and Executive Director, commented:
“The solid results recorded in the first half of the year reflect the strength of our brands and the disciplined execution of the Group’s strategy. We are satisfied with the abovemarket performance and high-quality, like-for-like growth trajectory that we have achieved in an increasingly uncertain market environment. The flexibility of our organisation gives us confidence in the Group’s ability to navigate the months ahead, as we continue to invest across our business.”

Andrea Guerra, Group Chief Executive Officer, added:
“The Group has successfully delivered 14 consecutive quarters of high-quality, like-forlike growth, with a positive Q2 building on a solid start to the year. Prada remained on a sound trajectory and Miu Miu confirmed its strong performance, with both brands capitalising on their unique identity, creativity, and positioning. In the current macroeconomic and geopolitical context, industry dynamics have become more challenging; this requires us to be agile and sharp on our product range, communication and overall positioning, to continue to drive client engagement and to progress in our journey towards retail excellence. While being vigilant, we remain committed to our strategy and to our ambition to deliver solid, sustainable and above-market growth.”

NET REVENUES*

Ongoing excitement around Prada and Miu Miu

Prada’s momentum continued as the brand capitalised on its creative strength, high impact initiatives, and engagement with audiences. The positive performance was supported by a well-balanced category mix: newness and icons continued to sustain Leather Goods, while creative dynamism drove Ready-To-Wear and Footwear traction. Successful menswear and womenswear shows confirmed the appeal of the brand's aesthetic codes. Collaborations with celebrated talents boosted the unveiling of a bold reinterpretation of the iconic Galleria bag and the presentation of the Re-Nylon collection campaign.

Miu Miu kept shining as excitement continued to rise among its community, fuelled by acclaimed fashion shows and engaging activations. The brand’s very positive commercial response extended across all categories, with impactful communication initiatives, including the new Leathergoods campaign, fostering the brand’s desirability. Special projects like Miu Miu Upcycled and successful collaborations kept the brand in the spotlight. Moreover, the Miu Miu’s distinctive voice continued to nurture contemporary cultural debates and inspire its community worldwide with the launch of Miu Miu’s first Literary Club “Writing Life” and the introduction of the itinerant Miu Miu Summer Reads.

Solid Retail Sales throughout the period (growth percentage at constant currency)

The Retail channel recorded growth of +18% yoy, with solid performance in Q2 at +18%, continuing to be driven by like-for-like, full price volumes.

Retail Sales at Prada increased in H1 by +6% yoy, with Q2 at +5%; Miu Miu recorded a strong H1 at +93% yoy, with Q2 at +95%.

RETAIL SALES

Asia Pacific progressed well in the period, +12%, albeit moderating in Q2 on the backdrop of a tougher comparison base and increasing spending outside the area.

Europe continued to grow at double-digit rate in the semester, +18%, supported by both domestic and touristic spending.

The Americas delivered a positive performance in H1, +7%, with Q2 registering a further slight sequential improvement.

Japan reconfirmed as the best performing region in the semester, +55%, supported by healthy local demand and strong tourism flow.

Middle East registered a solid performance in H1, +20%, despite persisting geopolitical tensions in the region.

Continuing our ESG journey

The Group continued to build on its climate strategy, focusing on reducing the impact of its operations in terms of Scope 3 GHG emissions through an ambitious plan of transition to lower-impact raw materials, with particular attention to leather, cotton, viscose, polyester and nylon, as well as paper and plastic for packaging. Chemical stewardship, raw material traceability and water data collection were also key areas of focus.

Over the period, the Group further strengthened the governance overseeing the supply chain and trained procurement teams and strategic suppliers to reinforce the alignment to the Group's key sustainability objectives.

On the People side, the Group set the pillars of its 3-year DE&I roadmap, with initiatives encompassing gender equality in top management, training, parenting policies and the development of sustainability-linked leadership behaviours. Moreover, the remuneration of a higher proportion of key executives has been linked to sustainability.

Finally, the Group’s commitment to culture and ocean conservation continued with the launch of the third SEA BEYOND educational module involving almost 35,000 students in 56 countries and a very successful international conference dedicated to ocean education, held in Venice in partnership with UNESCO.

APPENDIX

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