Prada (1913) Q3 2024 earnings summary

Executive summary

• Nine-month revenues reached €3.83 billion, up 18% year-over-year at constant FX, driven by strong retail growth and robust brand positioning for both Prada and Miu Miu.

• Retail sales grew 18% in the first nine months, with Miu Miu surging 97% and Prada up 4%, reflecting strong brand execution.

• Growth was broad-based across geographies, with double-digit increases in Europe, Asia-Pacific, Japan, and the Middle East.

• The group maintained its focus on long-term brand desirability, retail excellence, and strategic investments.

Financial highlights

• Retail channel contributed 89% of revenues, growing 18% year-over-year; wholesale rose 9%, royalties up 24%.

• Exchange rates negatively impacted group revenue by about 3 percentage points in the first nine months.

• Royalty income increased by 23.7% year-over-year, driven by eyewear and fragrances.

Outlook and guidance

• Management remains confident in delivering solid, sustainable growth above market for the full year, despite a high comparison base in Q4.

• Strategy for 2025 includes expanding Miu Miu's retail footprint and maintaining efficiency at Prada.

• Margins are expected to improve, with continued focus on cost leverage and operational efficiency.

• Strategic investment plan will continue despite market turbulence.