Last update on: 5:33 pm November 11, 2024 by fashionabc
Despite a general slowdown in the luxury market, Prada Group reported unaudited net revenues of €3,829 million for nine months this year, up by 18 percent at constant exchange rates in the same period of 2023. This success is largely due to a strong brand identity, creative dynamism and sound execution.
Prada Group posted net revenues of € 3.8 million- up 18 percent year on year.
Since it was founded in Milan in 1913 when Mario and Martino Prada opened a leather goods store, Prada has grown from Official Supplier of The Italian Royal House to a global fashion empire. In the nine months to 30 October 2024, Prada Group posted net revenues of € 3.8 million, up 18 percent year on year. Retail net sales increased by 18 percent at constant exchange rates in the same period of 2023.
Retail net sales of the Prada brand increased by 4 percent and Miu Miu by 97 percent, at constant exchange rates — with a sustained growth across all regions and product categories. During the nine-month period Church’s retail net sales reported a growth of 11.4 percent year- on- year.
Patrizio Bertelli, Prada Group Chairman and Executive Director, commented: “We are pleased to see that our strategy keeps delivering above-market performance at both Prada and Miu Miu. We are operating in a challenging environment, for the entire luxury value chain. Nonetheless, we continue to see opportunities for our brands and remain committed to our strategic investment plan in retail, technology and industrial capabilities to support the long-term, sustainable growth of our Group and our partners.”
Over the said period, the Group delivered double-digit growth in all regions, excluding Americas. In Asia Pacific, retail net sales rose by 12 percent despite the challenging market conditions in the region. In Europe, retail net sales rose by 18.1 percent, with a stable growth supported by local clients and tourists. In the Americas, retail net sales rose by 8 percent while Japan retail net sales reported an outstanding growth of 52.6 percent, driven by solid local consumption and strong tourist flow. Retail net sales in the Middle East also delivered a solid performance, up by 24.1 percent.
Strong brand identity, creativity and dynamism continue to foster desirability. Andrea Guerra, Group CEO, commented in a company release: “We progressed through the year with another quarter of high-quality, like-for-like growth, supporting our positive trajectory in both revenue and margins. Our brands remain desirable and relevant, thanks to the strength and consistency of their identity, creativity and sharp positioning.”
Miu Miu’s strong performance is evident in all categories, bolstered by effective communication strategies, such as the leather goods campaign. Projects like Miu Miu Upcycled and successful collaborations maintain the brand’s visibility. Per Vogue Business: “Led by Miuccia Prada, Miu Miu has been on a sharp growth trajectory since 2022. It has been credited for driving trends such as ballet flats, panties over tights, a rebellious take on officewear and the low-rise ultra-mini skirt — trends that, alongside its mini leather handbags, have particularly resonated with the young Chinese consumer. Its growth continues to outperform the group’s largest brand, Prada.”
Miu Miu’s strong performance is evident in all categories, bolstered by effective communication strategies image: miumiu.com
Guerra’s not complacent. “Prada recorded a solid performance, showing resilience against sector headwinds, and Miu Miu upheld its thriving growth momentum. Despite the challenging backdrop, we are confident in our ability to navigate the industry complexities, and remain committed to our ambition to deliver solid, sustainable and above-market growth.”
Sustainability strategy of Prada Group
Prada Group envisages a future in which sustainability and sartorial innovation go hand in hand to create sustainable and stylish apparel. Its sustainability strategy is the blueprint of a long process of growth and enhancement for the planet, people and culture and key executives in leadership envision further building up and reinforcing this commitment with ambitious targets.
The Group advanced its climate strategy by targeting a reduction in Scope 3 GHG emissions. This involved transitioning to lower-impact raw materials such as leather, cotton, viscose, polyester, nylon, and sustainable packaging materials like paper and plastic. Key areas of focus include chemical stewardship, raw material traceability, and water data collection.
Governance improvements were made with enhanced oversight of the supply chain, and procurement teams along with strategic suppliers received training to align with the Group’s sustainability goals. In terms of DE&I, the Group unveiled a three-year roadmap emphasizing gender equality in leadership, comprehensive training, parenting policies, and the development of sustainability-focused leadership behaviours. The remuneration of a higher proportion of key executives has also been linked to sustainability.
Prada SS25 womenswear Collection. Image: prada.com
The Group has also reinforced its dedication to culture and ocean conservation with the launch of the third SEA BEYOND educational module, reaching nearly 35,000 students across 56 countries, and hosted an international conference dedicated to ocean education in Venice, in collaboration with UNESCO.
“This is the only way to shape the mind and hearts of future generations so they have a more responsible behaviour when they become entrepreneurs, or the manager of a country, or a prime minister,” Lorenzo Bertelli, Prada Group Head of Marketing and Communication said in the interview with WWD. “We want to prove that this project is convenient for everybody — for us as a company, for the students and for everybody. And we want to lead the way and show that sustainability is convenient for everybody, also from the monetary perspective.”
In the past, Prada was one of thirty-two brands including Burberry, Chanel and Stella McCartney to sign the Fashion Pact, spearheaded by French President Emmanuel Macron and Kering chairman and CEO François-Henri Pinault, with its commitment to meet three key sustainability goals: eliminate greenhouse gas emissions by 2050; reduce single-use plastics by 2030 and support innovation to destroy micro-fibre pollution. Shortly, the luxury fashion brand became the first to sign a sustainability-linked loan, indicating that it would lose financially if it doesn’t deliver on its green targets.
Jasmeen Dugal is Associate Editor at FashionABC, contributing her insights on fashion, technology, and sustainability. She brings with herself more than two decades of editorial experience, working for national newspapers and luxury magazines in India.
Jasmeen Dugal has worked with exchange4media as a senior writer contributing articles on the country’s advertising and marketing movements, and then with Condenast India as Net Editor where she helmed Vogue India’s official website in terms of design, layout and daily content. Besides this, she is also an entrepreneur running her own luxury portal, Explosivefashion, which highlights the latest in luxury fashion and hospitality.
