Milan 18 November 2021 - Prada Group today hosts a Capital Markets Day on its strategy for longterm growth and on the actions it has taken to navigate the evolving luxury market.

Strategy highlights

• Consistently distinctive identity
• Investment in style, quality and product uniqueness
• Focus on direct distribution, to increase store productivity and online penetration
• Strengthened investment in industrial know-how and further vertical integration
• Increased commitment to sustainability, with concrete actions and ambitious targets
• Investment in people and technological infrastructure

2021 Third Quarter Trading update

• Further acceleration in retail sales: up 18% on 2 year stack
  
• Continuing online outstanding growth: more than 400%in Q3-21 vs Q3-19
  
• Further profitability improvement in Q3 across key metrics
  
• Strong cash flow generation and Net Working Capital improvement
  
• Net Financial Position close to zero at the end of September 2021
• Strong sales momentum continuing in Q4 to date

Medium-term financial targets

• Revenue target of about 4.5 billion EUR
• EBIT margin target of about 20% of total revenues
• Double online penetration to 15% of retail
• Increase retail sales density by 30-40%

Unveiling an ambitious climate strategy and the proposed appointment of two Environmental, Social and Governance experts to the Board of Prada S.p.A to further ESG strategy and Practices

The Prada Group announces an ambitious road to a Net-zero Climate strategy and the selection of two experienced professionals in ESG, to join the Board of Directors of Prada S.p.A., which will be closer to gender equality. The two Board Members will advance the Group’s ESG (Environmental, Social and Governance) strategy and practices and they will also be part of a new ESG Board Committee alongside Lorenzo Bertelli, Head of Corporate Social Responsibility.

In alphabetical order:

- Pamela Culpepper: Founding Member of Have Her Back Consulting firm
- Anna Maria Rugarli: Corporate Sustainability Vice President of Japan Tobacco International

Patrizio Bertelli, Chief Executive Officer of Prada S.p.A., commented:
“The Prada Group has a thoughtful and pioneering vision of fashion. At a time of significant cultural and societal change, luxury needs to continue evolving coherently with the market. Our dialogues and fluid perspectives continually reinterpret luxury. By being relevant, sustainable and impactful, we will drive long-term growth.”