Strong Creative Momentum Drive Prada, Miu Miu
MILAN — The Prada Group reported a stellar performance in 2023, with figures reported on Thursday detailing a 58 percent gain at the Miu Miu brand, solid business in Asia Pacific and Europe, and an outstanding performance in Japan.
In the 12 months ended Dec. 31, Prada Group revenues rose 13 percent to 4.72 billion euros, compared with 4.2 billion euros in 2022. At constant exchange rates, sales rose 17 percent.
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Net profit climbed 44.3 percent to 671 million euros, compared with 465 million euros in 2022.
“We are pleased with the strong results achieved in 2023, underpinned by our brands’ desirability,” said chairman and executive director Patrizio Bertelli. “The group delivered high-quality growth in revenue and profits, building on outstanding creative momentum, further improving its profitability and stepping up investments to support the growth of tomorrow. Innovation, dynamism and flexibility will be even more key to our success in 2024, and I am confident that our reinforced organization will be able to further evolve the group.”
Last year, retail sales amounted to 4.2 billion euros, up 12 percent compared with 3.73 billion euros in 2022. The group reported an acceleration in the fourth quarter, up 17 percent at constant exchange rates, compared with a 10 percent gain in the third quarter, reflecting solid underlying growth and an easier basis of comparison in China.
Retail sales of the Prada brand increased 12 percent year-on-year including 10 percent growth in the fourth quarter, accelerating from the third quarter across all categories.
Miu Miu retail sales soared 58 percent, supported by all categories and regions, ending the year with an 82 percent jump in the fourth quarter.
The group reported 12 consecutive quarters of like-for-like growth, driven by full-price sales. This resulted in solid improvements in productivity, which the company says remains a key priority for the future.
“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,” said Andrea Guerra, Prada Group chief executive officer.
“Looking ahead, we are mindful of this high comparison base as well as persisting macro and geopolitical uncertainties. Against this backdrop, our priority for 2024 remains to drive brand desirability and retail excellence further. As with 2023, while quarterly growth trajectory may not be linear through the year, we retain our firm ambition of delivering solid, sustainable, above-market growth.”
In 2023, wholesale revenues rose 12 percent to 433 million euros. Royalties grew 36 percent to 104 million euros.
Operating profit rose to 1.1 billion euros compared with 776 million euros, with a margin of 22.5 percent on sales.
Retail sales in Asia Pacific grew 17 percent to 1.44 billion euros. At constant exchange rates, sales were up 24 percent, although the company considered the volatile basis of comparison in 2022, impacted by multiple lockdowns in China.
Europe sales increased 10 percent to 1.31 billion euros, driven by strong domestic and tourist spending.
Sales in the Americas decreased 2 percent to 767 million euros, but were flat at constant exchange rates, showing a sequential improvement in the fourth quarter, supported by some repatriation of spending.
Japan was the best-performing region in 2023 with a growth of 31 percent to 484 million euros, driven primarily by local clients and with increasing presence of tourists. At constant exchange rates, sales in Japan climbed 44 percent.
The Middle East delivered a solid performance in the year, up 8 percent, despite the intensified geopolitical headwinds.
The net cash position stood at 197 million euros after 759 million euros of of capital expenditures cash-out, including strategic real estate investments.
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