Prada closes a 2023 to be framed, approaching 5 billion in revenues, in line with the objectives set for 2023. “High quality growth in terms of revenues and margins,” commented the president and executive director Patrick Bertelli. In detail, the Italian luxury house closed the past year with revenues of 4,7 billion euros, at +13%, up 17% at constant exchange rates compared to 2022. Bertelli underlined that this is thanks to the desirability of the Prada and Miu Miu, supported by product, communication and retail initiatives. The board of directors will propose to the shareholders' meeting, called for April 24th, the distribution of a dividend of €0,137 per share.
Results that do not go unnoticed by the market: the title it gained almost 15% on the Hong Kong Stock Exchange.
Prada: double-digit growth in profits and revenues
The CEO Andrea Guerra he added that the objective is to optimize the product mix between novelties and icons, especially in leather goods, to maintain and increase market shares. L'Net income of the group grew by 44%, equal to 671 million euros, accompanied by improved profitability: Gross margin rose 15% to 3,8 billion euros, representing 80,4% of revenues. EBIT amounted to 1,06 billion (+37%) with a margin of 22,5%. There net financial position it is positive for 197 million euros and "reflects cash-out for investments of 759 million euros, including strategic acquisitions in the real estate sector".
Le sales both retail and wholesale increased, driven primarily by fourth-quarter results. “Store productivity and profitability improved for the third consecutive year, driven by double-digit like-for-like growth,” Guerra said.
Prada, Asia drives growth
Among brands, Prada saw 12% growth in sales, with a further increase in the fourth quarter (+10%), accelerating compared to the third quarter in all product categories. Miu Miu recorded a notable 58% increase in retail (+82% in the fourth quarter alone), performing well across all geographies and product categories.
Geographically, theAsia was the driving force in sales with a jump of 17% (+24% at constant exchange rates), despite the restrictions in China, followed byEurope (+10%). The Americas recorded a slowdown at current exchange rates (-2%), while the Japan was the most dynamic area (growing by 31%) and the Middle East showed a +12%, despite geopolitical tensions. The CEO sees "challenging basis for comparison" in this scenario of geopolitical and macroeconomic uncertainty.
For 2024, the priority remains supporting the desirability of brands and pursuing excellence in the retail channel. “Quarterly growth may have an uneven trajectory over the course of the year, but our ambition remains unchanged: to continue to generate solid, sustainable and above-market growth,” concluded Guerra. The president said he was confident in the group's development, highlighting the importance of innovation, dynamism and flexibility as key elements for growth.
Bertelli: “One billion investments in retail in the next 5 years”
Bertelli, in an interview with Financial Times, said the fashion house plans a investment of one billion of euros in the next few five years in retail channel. This is because high-end luxury consumers are increasingly seeking an engaging shopping experience in physical stores. Bertelli stressed that the idea that e-commerce would completely replace in-store purchases was a pure illusion generated by the pandemic. “Only unprepared analysts thought so,” commented Bertelli, “because they ignore the evolution of consumer trends over time. I'm not saying that e-commerce platforms will disappear, on the contrary. But shops will become experiential spaces that bring people together." Prada will prioritize retail investments in key cities such as New York, Milano, London, Paris, Shanghai, Hong Kong e Tokyo.
