MILAN — Both the Prada and Miu Miu brands contributed to a strong performance of parent Prada Group in the first half of the year.
In the six months ended June 30, group net profit soared 62 percent to 305 million euros, compared with 188 million euros in the same period last year.
Revenues amounted to 2.23 billion euros, up 17 percent compared with 1.9 billion euros in the first half of 2022. At constant exchange rates, sales rose 20 percent.
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Retail sales increased 18 percent to 1.97 billion euros, driven by like-for-like full price sales.
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Wholesale revenues were up 8 percent to 194 million euros.
In a statement Thursday, Patrizio Bertelli, Prada Group chairman and executive director, attributed the performance to the brands’ desirability and to “disciplined execution,” and said that the group’s “globally balanced distribution allows us to capture growth despite ever-evolving industry demand dynamics. We are pleased with the quality of Prada’s continued growth and with the remarkable performance of Miu Miu. We will remain vigilant and nimble, ready to deal with different macroeconomic and demand scenarios that may materialize ahead. Our brands retain vast growth potential; our strategy is clear, and our reinforced organization is well equipped to execute.”
In the first half, operating profit rose 61 percent to 491 million euros compared with 305 million euros, a margin of 22 percent on sales.
Gross profit gained 21 percent to 1.79 billion euros, compared with 1.47 billion euros.
The second quarter, said Andrea Guerra, group chief executive officer, “was another positive quarter on top of a solid” first quarter, with Prada “remaining on a sound trajectory and Miu Miu reporting a remarkably strong performance, thanks to a strengthened identity and increasing visibility.”
Guerra underscored that the group’s “profitability further increased while we continued to consolidate our brands’ desirability with higher investments. We are still at the beginning of our strategic journey: We need to act with a long-term perspective, continuing to invest behind our brands, maintaining maximum focus on retail execution and productivity. For the current year, we retain our ambition to deliver solid, sustainable and above-market growth,” considering a more challenging comp base in the third quarter and some COVID-19 restrictions during the final quarter of last year.
At constant exchange rates, retail sales of the Prada brand grew 18 percent with a more moderate but solid pace compared to the 21 percent increase of the first quarter, on a high basis of comparison, with the exception of China.
Miu Miu reported 50 percent growth in retail sales in the semester, with the second quarter up 57 percent compared with 42 percent in the first quarter, lifted by the higher exposure to China and Asia.
At group level, sales of leather goods were up 12 percent; ready-to-wear rose 36 percent, and footwear gained 20 percent.
Capital expenditure amounted to 151 million euros.
The group continued to invest in its retail network upgrade with around 70 renovation projects completed in the semester to elevate customer experience and increase productivity.
At current exchange rates, retail sales in Asia Pacific gained 21 percent to 716 million euros in the first half, thanks to the acceleration in mainland China, Hong Kong and Macau, boosted by the low basis of comparison of 2022, when China was affected by the lockdowns in April and May, lifted from June.
Retail revenues in Europe rose 20 percent to 582 million euros despite the very challenging comparatives, driven by healthy local demand and high levels of tourism.
Retail sales in the Americas amounted to 361 million euros, compared with 360 million euros in the same period last year, although the North American client cluster continued to grow throughout the semester, including in the second quarter, the company said.
Japan was the best-performing region in the semester, up 38 percent to 224 million euros, benefiting from the group’s recent investments in the retail network, a strengthened organization, solid domestic demand and increasing tourism flows.
Sales in the Middle East grew 15 percent to 92 million euros.
As of June 30, the group’s net cash position stood at 283 million euros.