Prada (1913) Q2 2024 earnings summary

Executive summary

• Net revenues reached €2.55 billion, up 17% year-over-year at constant FX, with retail sales up 18% and strong brand momentum for both Prada (+6%) and Miu Miu (+93%).

• EBIT was €575 million, with a margin of 22.6%, up from 22% in H1 2023, and net income rose 26% to €383 million.

• Maintained a net cash position of €265 million as of June 30, 2024, supported by strong operating cash flow.

• Continued investments in retail, digital, IT, and manufacturing infrastructure, with a focus on brand desirability and organizational development.

• Double-digit retail growth achieved across all geographies except Americas, with Japan leading at 55% growth.

Financial highlights

• Net revenues: €2,549 million (+17% at constant FX, +14% at current FX); retail sales: €2.26 billion (+18% at constant FX).

• EBIT: €575 million (22.6% margin); net income: €383 million (+26% year-over-year).

• Gross margin: 79.8%, down from 80.3% in H1 2023, stable excluding FX impact.

• Cash flow from operations: €652 million; net operating cash flow after lease repayments: €580 million.

• CapEx totaled €169 million, focused on retail, IT, and industrial projects.

Outlook and guidance

• Management reiterates ambition for solid, sustainable, above-market growth despite complex industry and geopolitical dynamics.

• Focus remains on brand desirability, client engagement, and retail excellence, with OpEx growth expected to moderate in H2.

• No major changes anticipated in industrial gross margin for the remainder of the year.