Prada Reports Strong First-Half Results

Italian luxury group Prada announced a 17% increase in net revenue for the first half of the year, reaching €2.55 billion ($2.75 billion) at constant exchange rates. This growth surpasses analyst expectations and contrasts with the broader downturn in luxury spending affecting many competitors.

The rise was driven by significant performance from the Miu Miu brand, which saw its retail sales nearly double and now account for nearly 25% of the group’s retail sales. Sales for the larger Prada brand grew by 6%. Prada's operating profit also increased to €575 million, exceeding the consensus estimate of €552 million.

Chief Executive Andrea Guerra highlighted strong sales in Europe and Asia, with Miu Miu beginning to target the U.S. market. However, he noted that business in China has faced recent challenges, although other regions are performing well. Guerra cautioned that he does not foresee substantial positive changes in the luxury sector over the next 6-9 months.