Prada and Miu Miu’s Strong Momentum Continues
MILAN — Brand momentum remains strong for Prada and Miu Miu.
In the first nine months of the year, parent Prada Group’s revenues increased 12 percent, reaching 3.34 billion euros compared with 2.97 billion euros in the same period last year. At constant exchange rates, sales grew 17 percent.
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“Our strategy delivered solid growth in the first nine months of 2023, including in the third quarter, notwithstanding the very challenging basis of comparison,” said Patrizio Bertelli, Prada Group chairman and executive director. “The group continued to consolidate its brands’ desirability and accelerated investments as planned. Looking ahead, we are focused on enhancing innovation and dynamism, drawing on the strength of our reinforced organization, and on retaining the flexibility that characterizes our group.”
In the nine months ended Sept. 30, retail sales rose 12 percent to 2.97 billion euros and the wholesale channel reported a 4 percent gain to 291 million euros. In the third quarter, wholesale was up 10 percent on a very challenging basis of comparison, which saw a 32 percent gain in the same period last year. Growth continued to be supported by both average price and full price volumes.
In the nine months and at constant exchange rates, retail sales of the Prada brand increased by 13 percent while those of Miu Miu climbed 49 percent.
Royalties soared 67 percent to 73 million euros.
“In the third quarter, Prada remained on a sound growth trajectory, driven by solid full price like-for-like sales,” said Andrea Guerra, chief executive officer of the group. “Miu Miu continued to deliver a strong performance across all geographies and categories. In an uncertain geopolitical and economic backdrop that requires us to stay vigilant, we continue to see positive momentum in the business and strong excitement around our brands, positioning us well for the fourth quarter and vis-à-vis our ambition to deliver solid, sustainable and above-market growth in 2023.”
Asia Pacific progressed well over the first nine months of 2023, reporting a 15 percent increase in retail revenues to 1.04 billion euros, or a 21 percent gain at constant exchange rates, on a volatile basis of comparison, which saw significant disruption in the second and fourth quarters last year.
Sales in Europe increased 13 percent to 941 million euros thanks to local and tourist demand despite a very challenging basis of comparison. “The performance in the third quarter remained positive, with solid underlying demand, albeit with more moderate year-on-year growth, as expected,” the group said in a statement on Tuesday.
Revenues in the Americas were down 3 percent to 536 million euros with “a mild sequential improvement” in the third quarter compared with the second quarter.
Japan remained the best-performing region seeing sustained growth throughout the period, with sales gaining 34 percent to 334 million euros, largely driven by local demand. At constant exchange rates revenues rose 47 percent in that market.
The Middle East delivered a solid performance, showing a 10 percent increase to 125 million euros.
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