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Prada Group exceeds one billion in first quarter revenue

The credit goes to Miu Miu and China

Prada Group exceeds one billion in first quarter revenue The credit goes to Miu Miu and China

Although 2023 is considered by leading industry experts to be a year of social and economic turmoil, the Prada Group has managed to turn the tide. The company, led by Patrizio Bertelli, recently reached an important milestone and proved that luxury can grow even in times of crisis. According to WWD, sales reached €1.06 billion on 31 March, up 22% from €876 million in the same period in 2022, wholesale sales rose 9% to €91 million and licencing revenue increased 52% to €21 million, thanks to eyewear and perfume licences. For the first time, Prada achieved quarterly sales of more than 1 billion euros, joining the ranks of LVMH, Hermès and Tod's Group. This is another indication that luxury brands are maintaining momentum despite the slowdown in some markets, helped by the reopening of China after the lifting of pandemic closures.

Andrea Guerra, Prada Group CEO, spoke of a 'solid' rebound in China, with revenues up 22% and retail sales of €360 million in Asia Pacific. Revenue in Europe rose 26% to €259 million thanks to tourism and local consumption, while growth in the Americas was sluggish at 10% and €174 million respectively: «Americans are keeping up, but they are not as dynamic as they were in the past, buying in Europe to take advantage of a market economy that has never been able to meet consumer needs.» Japan also proved to be a growth market, up 44% to 113 million euros, thanks to the group's recent investments in its retail network, solid domestic demand and increased tourism. The Middle East also grew by 20% to €47 million, albeit with some slowdown from the previous quarter.

Ready-to-wear clothing remained the most important category, up 38% to EUR 316 million, or 33% of total sales, followed by footwear, up 20% to EUR 176 million. Guerra said he was 'satisfied with the product mix' and that Prada's growth in the ready-to-wear category was 'a success', but stressed that leather goods were «a symbolic part of the history and the future». The brand is nimble when it comes to novelties, but it also patiently develops iconic products that perform well: «Prada is very, very desirable'. The development of Miu Miu has played a crucial role in its growth, which has increased by 42% to 129 million euros. Guerra praised the team led by CEO Benedetta Petruzzo: «They have worked hard over the last 12to 36 months and the brand is coming along well, is visible and is having much greater success at retail». Asked about Church's, whose sales have fallen 21 per cent to €6 million, Guerra said he would address the problem «in the next two or three quarters. We are working hard and doing our homework in terms of product positioning, shops, people and motivation. It is a high quality brand that is an important complement in the medium to long term» rather than a volume driver. «We look to the future with confidence and are determined to continue on our path of stable and sustainable growth»  Bertelli added.