Despite facing difficulties in Russia and China, Italian luxury group Prada has reported strong performances in the first four months of the year, largely driven by its U.S. operations. Prada CEO Patrizio Bertelli has expressed confidence in the company’s targets and has even contemplated a potential dual listing on the Milan stock exchange. While Russia only contributes a small 2% to the group’s sales, the recent closure of over 50% of Prada’s stores in China has had a noticeable impact. However, Bertelli remains positive, highlighting that the company exceeded expectations in the first quarter and has continued to see favorable results in April.

In an additional announcement, Bertelli revealed that his son, Lorenzo Bertelli, will take over as CEO in the next three to four years, evidencing a succession plan within the family. Moreover, when discussing the potential consolidation of major Italian brands into a single group, Bertelli acknowledged the successful strategies employed by French fashion giants Kering and LVMH. However, he believes that the optimal time for such a merger was between 2000 and 2010, and that the opportunity has since passed. Despite this, Prada will persist in concentrating on its own growth and expansion in the luxury market.

Useful Links:
1. The New York Times – Prada reports strong results in Q1
2. Vogue Business – Prada’s performance in China