Prada (1913) investor relations material

Executive summary

• Net revenues reached over €3 billion in H1 2026, up 16% year-over-year at constant FX and 5% organic, with Q2 organic growth accelerating to 7%.

• Retail sales rose 12% (+3% organic), with Q2 momentum improving despite Middle East headwinds; wholesale surged 40% (+20% organic), aided by phasing effects and strong duty-free and independent wholesale.

• EBIT Adjusted was €530 million (17.4% margin), steady year-over-year on an organic basis, with dilution mainly from Versace integration and FX.

• Strong brand momentum at Prada and Miu Miu, with Prada accelerating in Q2 and Miu Miu maintaining high desirability; Versace performed in line with expectations and began creative repositioning under new leadership.

• Effective cost discipline and working capital management supported steady profitability and healthy cash flow, with net debt at €693 million after capex and dividend payments.

Financial highlights

• H1 2026 net revenues: €3,048 million (+16% at constant FX, +5% organic).

• EBIT Adjusted margin: 17.4% (€530 million), reflecting Versace and FX impact; organic margin steady year-over-year.

• Net income: €327 million (10.7% of net revenues), down from €386 million in H1 2025.

• Gross margin: 78.3%, down from 80.1% in H1 2025.

• Net operating cash flow was €414.5 million, with free cash flow at €167.3 million.

Outlook and guidance

• The group remains confident in brand desirability and aims for above-market growth, despite ongoing macroeconomic and geopolitical uncertainty.

• Focus remains on strengthening Prada’s growth, managing Miu Miu’s transition to normalized growth, and laying new foundations for Versace.

• Gross margin expected to remain similar in H2 as in H1.

• Wholesale channel growth expected to normalize after one-off phasing effects.

• Miu Miu long-term growth opportunity seen between 5-10%; for 2026, mid-single-digit growth is targeted.