Companies

Prada’s full year profits surge by 44%

Mar 11, 2024 Italy

The Italian-based group ended 2023 with a 17% growth in revenue and a 44% rise in profits, as compared to the previous year, boosted by the desirability of its Prada and Miu Miu brands

“We have successfully delivered on our ambitions in 2023, with excellent performance achieved consistently through the year, as brand desirability grows stronger fuelled by a combination of product, communication, and retail initiatives. Retail productivity and profitability improved for the third consecutive year, thanks to once again strong double-digit, like-for-like growth”, commented Andrea Guerra, Group Chief Executive Officer of Prada.

Full Year Results

(on a constant currency basis)

The Prada Group reported 4.7 billion euros in net revenue in 2023, reflecting an increase of 17% on a comparable basis to the previous year. The company’s retail sales accounted for 4.2 billion euros of the total revenue last year, up by 17% year-over-year, and wholesale sales totalled 388 million euros, up by 13 year-over-year.

Breakdown of results by brand. Prada brand’s retail sales grew by 12% year-over-year in the last financial year, including a “solid growth” of 10% year-over-year in the fourth quarter. Miu Miu's full year retail sales increased by 58% over the previous year, supported by all categories and regions, ending the year with a “remarkable growth” of 82% year-over-year.

Last year, the group recorded net sales of 1.44 billion euros in the Asia Pacific region, an increase of 24%, as compared to fiscal 2022. Meanwhile, Japan “was the best-performing region” in 2023, with a net sales growth of 44% year-over-year to 484 million euros.

On a comparable basis to financial 2022, the company’s net sales in Europe increased by 14% to 1.31 billion euros last year, with growth more pronounced in the first half of the year, and by 10% in the Middle East to 180 million euros, “despite the intensified geopolitical headwinds”. On the other hand, in the Americas region, net sales remained stable at 767 million euros.

The Italian-based luxury group highlighted its “further profitability improvement” in 2023, with an EBIT of 1.1 billion euros and an EBIT margin of 22.5%, as compared to an EBIT of 776 million euros and an EBIT margin of 18.5% in the prior year. Additionally, Prada group’s full year net income soared by 44% year-over-year to 671 million euros.

Image Credits: wmagazine.com

Italy Companies Luxury Prada Results Year Results