Prada (1913) Q4 2025 earnings summary

Executive summary

• Net revenues reached €5.7 billion, up 9% at constant FX and 8% organically, marking the fifth consecutive year of group-level growth despite significant FX headwinds and a challenging luxury market environment.

• Retail sales grew 8% organically to €5.1 billion, with Miu Miu delivering 35% growth and Prada brand showing resilience, turning positive in Q4 after a mid-year dip.

• Completed the acquisition of Versace in December 2025 for $1,395 million, consolidating one month of results and adding €684 million in net revenues and 220 stores.

• Continued strong investment in digital, AI, store upgrades, and brand desirability, while maintaining steady profitability.

• Profit for the year was €851.9 million, up 1.6% year-over-year, with a proposed dividend of €0.166 per share.

Financial highlights

• EBIT adjusted reached €1,324 million (23.2% margin), with pre-Versace margin steady year-over-year; net income rose 2% to €852 million.

• Gross margin improved by 50 bps to 80.3%, driven by operating leverage and channel mix.

• CapEx totaled €617 million, focused on retail, industrial, and technology investments.

• Net debt at year-end was €466 million after Versace acquisition, CapEx, and dividends.

• Board proposes a dividend of €0.166 per share, totaling €425 million (50% payout ratio).

Outlook and guidance

• Expect continued solid organic growth for Prada and Miu Miu in 2026, with Miu Miu targeting double-digit growth if market conditions allow.

• Versace to undergo a year of transition in 2026, with mid- to high-single digit top-line contraction expected due to channel repositioning and sub-brand discontinuation.

• Group EBIT margin to remain steady excluding Versace; Versace will dilute margin in 2026, with improvement targeted from 2027.

• Continued FX headwinds anticipated in 2026.