Italian luxury group Prada has started the year off strong, with sales surging by 22% in the first quarter to reach €1.065bn ($1.269bn). This impressive growth can be attributed to the increased visibility of its main brands, Prada and Miu Miu, as well as strong performance in the retail and Asia-Pacific markets. Notably, Miu Miu experienced a significant sales increase of 42%.
The success of Prada can be directly attributed to the increased visibility of its core brands. Prada, designed by Miuccia Prada with Raf Simons, continued to strengthen its desirability through various initiatives, such as the launch of the Eternal Gold jewelry collection and in-store activations. Miu Miu also saw a surge in sales, driven by a successful fashion show in Paris and the second launch of New Balance sneakers, as well as an expanded leather goods range.
The direct distribution channel was the primary revenue driver for Prada, accounting for €953m in turnover in the first quarter. This represented a 22% increase compared to the previous quarter. The growth can be attributed to the development of full-year like-for-like sales. Leather goods, ready-to-wear, and shoes all saw significant increases in retail sales.
The Asia-Pacific market played a crucial role in Prada’s success, with retail sales in the region reaching €360m, a 22% increase. Sales in China saw a significant acceleration towards the end of the quarter, driven by the recovery of the Chinese market after the lifting of anti-Covid measures. Japan also saw a surge in retail sales, thanks to investments in the store network and strong demand from local customers and tourists. Europe, the Americas, and the Middle East also experienced growth in retail sales.
Prada’s strong performance in the first quarter aligns with other major luxury brands such as LVMH and Hermès. The company is optimistic about the remainder of the year and aims to exceed €4.5bn in revenue by the end of 2023. With its focus on brand investment, sales network expansion, and retail productivity, Prada is well-positioned for continued success in the luxury market.
Useful links:
– Prada Group Investor Relations
– Prada Official Website
