Prada, the renowned Italian fashion group, has reported an impressive 20% increase in sales for the first half of this year. The company’s strong performance in Asia and Europe has helped counterbalance a slowdown in the Americas region. All product categories have experienced double-digit growth, with ready-to-wear leading the way, followed by footwear and leather goods. The smaller brand under Prada’s umbrella, Miu Miu, has also contributed to the overall sales growth. While Prada’s revenues reached a total of 2.23 billion euros, slightly below analysts’ expectations of 2.28 billion euros, adjusted earnings before interest and taxes (EBIT) exceeded expectations, reaching 491 million euros and surpassing analysts’ estimates of around 460 million euros. The EBIT margin improved as well, reaching 22%.

Prada’s CEO, Andrea Guerra, mentioned that even though the third quarter posed a more challenging comparison to last year and the company was impacted by Covid restrictions in Asia, they remain focused on delivering solid, sustainable, and above-market growth for the current year.

In contrast to Prada’s positive performance, industry leader LVMH reported only a modest increase in sales recently. This raises concerns about a potential slowdown in the overall luxury goods industry. LVMH experienced a slight decline in quarterly sales in the United States due to inflation and economic turbulence, which affected consumer demand for luxury goods.

During a conference call with analysts, Prada’s CEO, Guerra, did not provide any updates regarding the possibility of a dual listing in Milan. However, Chief Financial Officer Andrea Bonini stated that the company is technically ready for a listing in its home country. Nevertheless, he emphasized that it is currently not a priority for the company.

Looking ahead, Prada’s management is focused on accelerating investments in their brands and stores for the second half of the year. They express confidence in the company’s ability to achieve further success in the upcoming months.

Here are two relevant links for more information on Prada’s sales growth and the luxury goods industry:
Reuters: Prada reports 20% sales growth in H1 due to strong Asian and European demand
Business of Fashion: LVMH reports modest sales growth, signaling potential slowdown in the luxury goods industry