Prada (1913) Q1 2025 earnings summary

Executive summary

• Achieved double-digit retail sales growth of 13% year-over-year in Q1 2025, with net revenues reaching €1,341.3 million, despite challenging macro and sector dynamics.

• Miu Miu delivered exceptional retail sales growth of 60% year-over-year, while Prada brand sales remained stable against a strong prior-year comparison.

• Retail net sales accounted for over 90% of total net revenues, with a focus on brand relevance, creativity, and disciplined operations.

• The sector remains challenging, with the luxury market flat or declining for 18 months and no clear signs of improvement.

Financial highlights

• Group net revenues reached €1.34 billion in Q1, up 13% at constant FX year-over-year, with retail sales totaling €1.22 billion and wholesale up 7%.

• Royalty income rose 14.7%, supported by eyewear and fragrances.

• Exchange rates had a mild positive impact of 50 basis points on revenues.

Outlook and guidance

• Management expects the second quarter to remain challenging, especially in Japan, but anticipates easier comparisons in the second half of the year.

• Priorities remain on nurturing brand creativity, sustainable growth, and moderate margin expansion.

• No significant change in consumer mood or demand expected in China for the near term.