Prada, the renowned luxury brand headquartered in Italy, is expecting robust revenue growth in 2023. The company’s exceptional performance in Europe in 2022 surpassed analysts’ predictions and played a key role in its success. Prada’s adjusted operating profit for the year accounted for 20.1% of its sales, meeting the target established by the company in November 2021.
Andrea Guerra, Prada’s newly appointed CEO, expressed confidence in the brand’s future, stating that they anticipate solid revenue growth that will outperform the market average in 2023. Guerra also emphasized that China has once again become a significant growth driver for Prada.
In the previous year, Prada saw a remarkable 21% increase in net revenues, reaching 4.2 billion euros ($4.4 billion) at constant exchange rates. This surpassed analysts’ expectations of 4.04 billion euros, as reported by Refinitiv data. The growth in net sales was primarily driven by a remarkable 63% increase in Europe, fueled by strong demand and a rebound in tourism throughout the region. In the Americas, revenue growth reached 22%, with a return to normalcy in the latter half of the year. Although lockdowns in China hindered growth in the Asia Pacific region, Prada managed to mitigate the decline through strong performance in South Korea and Southeast Asia.
The recent change in leadership at Prada saw Andrea Guerra, former chief of Luxottica, assume the position of CEO. Guerra’s appointment marked a potential transition to the next generation of the founding family, as he replaced Patrizio Bertelli and Miuccia Prada.
With their impressive financial performance in 2022 and optimistic outlook for 2023, Prada continues to assert its dominance in the luxury fashion industry. The brand’s ability to adapt to evolving market dynamics and leverage emerging opportunities positions them for sustained success in the future.
Useful Links:
1. Prada Group Results for the Full Year 2022
2. Prada Sees Better 2022 with Asian Store Growth
