Italian luxury group Prada has surpassed expectations with its sales reaching 4.2 billion euros last year, despite a slowdown in consumption in China during the last quarter. The company is projected to achieve a net profit of 465 million euros in 2022, experiencing a growth of 58%. This success can be attributed to the strong desirability of Prada’s leading fashion houses, with Miu Miu being named Brand of the Year 2022 by Lyst, and Prada also receiving positive attention from search engine users.
The increased revenue of Miu Miu by 20%, and Prada’s growth of 25%, can be attributed to successful product launches, effective talent management strategies, and dynamic event formats implemented by the group. The sales growth is evident across all product categories, with leather goods experiencing an 18% increase, ready-to-wear with a 27% growth, and shoes with a significant 29% growth. Miu Miu’s contribution has particularly contributed to the resurgence of ballet flats in the fashion industry.
Geographically, Prada’s performance aligns with that of other luxury players. The Asian market saw a slight contraction of 2% due to China’s implementation of the zero-COVID policy towards the end of 2022. However, Europe witnessed a strong rebound, driven by the recovery of tourist flows.
Executive director of the Prada group, Patrizio Bertelli, states, “In 2022, we further strengthened our position and organization, and in the current year, we will accelerate the execution of our strategy.” Additionally, Andrea Guerra, the CEO of the group, confirms that they will continue to invest in enhancing the desirability of their brands, renovating their distribution network, and improving manufacturing capabilities.
Apart from efforts to revitalize and upgrade their retail network, Prada has also heavily invested in digitalization in recent years. This strategy has proven successful, as online purchases have witnessed double-digit growth in 2022, accounting for 7% of total sales.
Useful links:
– Business of Fashion: Prada Sales Exceed Expectations
– Reuters: Prada’s Profit Projection for 2022
