Prada (1913) Q4 2024 earnings summary

Executive summary

• Revenues reached €5.4 billion in 2024, up 17% at constant exchange rates, with strong growth at Prada (+4%) and Miu Miu (+93%).

• EBIT margin improved to 23.6% (€1,280 million), and net income rose 25% year-over-year to €839 million.

• Net cash position at year-end was €600 million, supported by strong cash flow and disciplined capital allocation.

• CapEx totaled €493 million, focused on retail network renovation, industrial capabilities, and digital projects.

• Progressed on sustainability, reducing Scope 1 & 2 GHG emissions by 61% vs. 2019 and advancing gender equality and biodiversity initiatives.

Financial highlights

• Retail sales totaled €4.8 billion, up 18% year-over-year; wholesale up 7%; royalties up 17%.

• Gross margin was 79.8%, stable year-over-year excluding FX impact.

• OPEX increased 13% at constant FX, driven by variable costs and investments in marketing, retail, and IT.

• Net operating cash flow after lease liabilities was €1,212.8 million, up from €725.6 million.

• Dividend per share proposed at €0.164, up from €0.137, for a total payout of €420 million (50% payout ratio).

Outlook and guidance

• Confident in maintaining growth trajectory in 2025, with focus on brand creativity, retail execution, and strategic investments.

• Retail and industrial CapEx expected to increase in 2025, with more focus on new space and strategic M&A.

• Margin expansion remains a goal, but priority is long-term brand investment and growth.

• Management expects complex industry dynamics to persist but remains committed to investment in retail, industrial capabilities, and technology.