LETTERS TO STAKEHOLDERS

We are pleased to report a set of solid results which are a testament to the strength of our strategy and represent another step forward in the journey we have laid out for our Group and its brands. The macroeconomic environment has been challenging and the sector dynamics have certainly become more complex, but our brands have demonstrated resilience thanks to their dynamic creativity and polyhedric soul. ​

With 2024 we achieved four consecutive years of double-digit growth, with net revenues up 17% to reach Euro 5.4 billion. Underlying this result was a very healthy performance of the Retail channel, up 18% yoy driven by full price volumes. ​

Prada confirmed its positive growth trajectory and Miu Miu gained a whole new level of visibility and scale. ​

In a context of ongoing investments behind the brands, we delivered further margin expansion with EBIT margin reaching 23.6%. ​

Steadfast progress was also made in the strategic investment plan, as we deployed close to Euro 500 million: retail, industrial initiatives and technology will continue to be instrumental to the growth of tomorrow. ​

Finally, we closed the year with a healthy balance sheet with a net cash position of Euro 600 million. ​

We live in times where borders are blurring and brands must embrace multidisciplinary conversations, bringing to the table an ever-evolving language to interpret contemporaneity. This ability to read the spirit of the time is essential, and Prada and Miu Miu have continued to carve the cultural landscape building up their own universe in the way they engage with customers. Through immersive events, exclusive experiences and a further improved retail network, we have provided our brands with powerful dimensions to express their distinctive identities and connect with their communities. ​

While we are proud of what has been achieved so far, we recognize this is the time to work even harder to capitalize on the efforts of the past years, fostering desirability with a long-term mindset and raising the bar higher on retail execution, striving for excellence. ​

In parallel, we shall continue to elevate our retail network and to strengthen our industrial infrastructure, building on years of investments and knowhow, and reinforcing the foundations for our journey. ​

We are aware that the sector headwinds are likely to persist, at least for a little longer. Nonetheless we continue to see opportunities for our brands, and we are more committed than ever to our execution and strategic vision, always keeping in mind our primary and most important objective: creating products worth dreaming on, longing for, falling in love with.

2024 has been a very positive year, not only in terms of business growth, but also because we have maintained a strong focus on securing progress in key work streams across the three pillars of our sustainability strategy: Planet, People and Culture.

I am very proud that our Sustainability Committee has helped us to drive the internal debate on the new challenges arising from the complex ESG regulatory scenario, to identify the right governance for brand new initiatives and to make concrete progress on the global sustainability strategy.

Recognizing the environmental impact of our raw material sourcing, we have advanced on a challenging three-year roadmap to convert key raw materials to lower impact alternatives and launched a water risk assessment across our value chain with prominent partners such as WWF. Protecting ecosystems is certain to be a key focus of our overall commitment, as it is inextricably linked to our core business.

We are also actively addressing circularity through our products, constantly expanding our Prada Re-Nylon Collection made of regenerated nylon and strengthening the Upcycled by Miu Miu initiative throughout the year.

To me, it is extremely important to keep alive this conversation with our clients.

Of course, we cannot achieve our goals without the active contribution of our supply chain, so we have also focused on training and awareness programs to ensure that our key suppliers are aligned with our strategy.

More energy will be spent on this front as our greatest impact is throughout our value chain, increasing the accountability of all parties involved.

At the same time, we are reaffirming our purpose to be Drivers of Change, embedding our values through a series of targeted initiatives for our employees, from the launch of a global People Culture Forum to foster open discussions on our People culture across functions and regions, to the implementation of a roadmap to improve equity and inclusion in our working environment, from the “Prada Group We Are Family” events, to the commitment to work-life balance and professional inclusion through our new global Parental Policy.

Finally, thanks to part of the proceeds from the Prada Re-Nylon for SEA BEYOND Collection, the SEA BEYOND project continues to grow, with the launch of the third educational module on the interconnection between ocean and climate, reaching nearly 35,000 students in 56 countries. During the year, we also co-hosted with UNESCO-IOC the first “Ocean Literacy World Conference” in Venice, which brought together 131 delegates from UNESCO Member States and ocean literacy experts to establish ocean literacy in the spheres of education, science, policy, business and culture, and the Ocean&Climate Village in Barcelona during the 37^th America’s Cup. It was incredible to see how people responded to the shared sense of urgency to promote ocean conservation during this memorable racing season, which culminated in the victory of both the Luna Rossa Prada Pirelli women’s and youth teams.