Prada (1913) Q2 2024 earnings summary

Executive summary

• Net revenues reached €2.55 billion in H1 2024, up 17% at constant FX, with retail sales up 18% and EBIT margin at 22.6% (€575 million).

• Miu Miu retail sales surged 93% year-over-year, now contributing 23% of group retail sales, while Prada brand grew 6%.

• Net income rose 26% to €383 million, reflecting strong profitability and cash flow.

• Double-digit retail growth was recorded in Japan (+55%), Europe (+18%), Middle East (+20%), and Asia Pacific (+12%), with Americas up 7%.

• Continued investments in branding, digital infrastructure, and organizational development supported strategic evolution.

Financial highlights

• Gross margin was 79.8% of net revenues, down 50 bps year-over-year, stable excluding FX impact.

• EBIT was €575 million (22.6% margin), up from 22% in H1 2023.

• Net income margin reached 15.0% (vs. 13.7% in H1 2023); earnings per share €0.150.

• Cash flow from operations was €652 million; net cash position at €265 million as of June 2024.

• CapEx totaled €169 million, focused on retail, IT, and industrial infrastructure.

Outlook and guidance

• Management reiterates ambition for solid, sustainable, above-market growth despite complex industry and geopolitical dynamics.

• OpEx growth expected to moderate in H2 as investments annualize and A&P becomes less weighted.

• Focus remains on brand desirability, client engagement, and retail excellence for the remainder of 2024.