Prada accelerates and Miu Miu normalizes as Versace adds scale and margin pressure to the group’s first-half results.
Key Takeaways
- The Americas led organic growth, rising 17% in the first half and 19% in Q2.
- First-half net revenue reached €3.048 billion, rising 16% at constant exchange rates, 11% as reported and 5% organically.
- Second-quarter organic revenue growth accelerated to 7%, with organic retail growth improving to 5% from 1% in Q1.
- Prada retail sales rose 6.3% in Q2, making the flagship brand the group’s strongest source of second-quarter momentum.
- Miu Miu grew 2.6% in Q2 against a 40% prior-year comparison.
- Versace contributed €305 million in net revenue during its first full half under Prada Group.
- Adjusted operating margin reached 17.4%, including Versace and currency effects. On an organic basis, the margin remained in line with the prior year’s 22.6%.
Prada Group accelerated during the second quarter as renewed momentum at its flagship brand began to rebalance a portfolio that now includes Versace.
First-half net revenue reached €3.048 billion, increasing 16% at constant exchange rates and 11% at current rates. Excluding Versace, organic growth was 5%. Second-quarter organic revenue growth strengthened to 7%, according to Prada Group’s official first-half results.
Retail sales totaled €2.633 billion, representing 86% of group revenue. Organic retail growth improved from 1% in the first quarter to 5% in the second, despite disruption in the Middle East.
The figures capture a significant transition. Prada is recovering momentum, Miu Miu is entering a more normalized phase, and Versace is beginning a long-term repositioning. Each house now carries a distinct role within the group’s growth strategy.
Prada Reclaims the Lead
Prada delivered the strongest acceleration among the group’s established brands. Retail sales increased 3.3% during the first half and 6.3% in Q2, supported by like-for-like, full-price sales.
The flagship generated €1.621 billion in first-half retail sales and represented 62% of the group’s retail business. Its renewed momentum therefore carries greater financial significance than the percentage gain alone suggests.
Performance improved across the Americas, Japan and Asia Pacific. Prada attributed the acceleration to stronger execution and a broader product architecture across categories, accompanied by continued investment in retail, communication and cultural programming.
Projects including Prada Mode, Prada Frames and the development of Prada Galleria in Milan continue to expand the brand’s presence across culture, hospitality and design. Its work with Axiom Space on next-generation spacesuits adds a technical dimension grounded in materials research and product development.
These initiatives support a wider commercial objective: strengthening the full-price business while increasing the depth of the Prada universe. The second-quarter result suggests that this strategy is beginning to generate measurable traction.
Miu Miu Enters Its Next Phase
Miu Miu retail sales increased 2.5% in the first half and 2.6% during Q2. The pace marks a sharp normalization following several years of exceptional expansion, including growth of 40% in the second quarter of 2025.
The brand generated €763 million in first-half retail sales and accounted for 29% of the group total. Growth remained robust across the Americas, Asia Pacific and Japan, with Europe more subdued and the Middle East creating a larger drag.
Miu Miu’s current task centers on preserving desirability as its comparison base becomes more demanding. Its product expansion, elevated retail environments and cultural projects are designed to extend the brand’s relevance beyond the momentum of individual categories or seasonal trends.
Collaborations and platforms spanning sport, literature, cinema and music continue to widen its cultural reach. The moderated sales trajectory now places greater emphasis on the durability of that ecosystem.
Versace Adds Scale and Margin Pressure
Versace contributed €305 million in net revenue during the first half, including €219 million in retail sales. The house represented 8% of group retail revenue during its first full six-month period under Prada Group.
Its inclusion explains much of the gap between the group’s 16% constant-currency revenue increase and its 5% organic growth. It also contributed to the difference between underlying and consolidated profitability.
Prada Group is concentrating on improving Versace’s retail execution, elevating the quality of revenue and gradually increasing its full-price business. Selective closures of non-strategic stores form part of that process.
Pieter Mulier began as Versace’s chief creative officer on July 1, opening the creative phase of the repositioning. His arrival gives Prada Group a clearer framework for aligning product, image and commercial policy around the house’s next chapter.
Versace’s near-term contribution will be measured through operating discipline and brand reconstruction. Its longer-term potential depends on whether the group can translate Mulier’s creative direction into a stronger full-price business.
The Americas Drive Regional Growth
The Americas delivered the group’s strongest organic performance, rising 17% in the first half and accelerating to 19% in Q2. Retail sales reached €572 million, an increase of 37% including Versace.
Asia Pacific grew 6% organically during the half and 8% in Q2, supported by improvements at Prada and sustained momentum at Miu Miu. Japan increased 2% organically in the first half and 8% during the second quarter.
Europe remained under pressure, declining 4% organically during the half. The region improved to a 2% decline in Q2 as tourist spending and local demand began to recover.
The Middle East fell 24% organically during the first half and 26% in Q2 as regional conflict continued to affect trading. Local consumption showed sequential improvement, though the market remained the group’s clearest geographic weakness.
The results reveal increasingly localized growth dynamics. The Americas now supply the strongest expansion, Asia Pacific and Japan are improving, and Europe is moving toward stabilization.
Underlying Profitability Holds
Adjusted operating income reached €530 million, compared with €619 million a year earlier. The reported adjusted operating margin declined to 17.4% from 22.6%, reflecting the inclusion of Versace and adverse currency effects.
On an organic basis, Prada Group maintained an adjusted operating margin in line with the prior-year level. Efficiencies, cost discipline and operating leverage absorbed higher marketing investment across the existing business.
Gross margin declined to 78.3% from 80.1%. Advertising and promotional spending increased to 10.1% of revenue from 9.3%, while selling expenses rose to 40.8% from 38.8%.
Net income decreased to €327 million from €386 million. Cash flow from operations reached €627 million, and net cash flow before dividends improved to €176 million from €151 million.
The group ended June with net debt of €693 million, compared with €466 million at the close of 2025. The movement followed a €403 million dividend payment and continued investment across retail, manufacturing and digital infrastructure.
A Three-Brand Operating Test
Prada Group enters the second half with three clearly defined priorities: extending Prada’s renewed momentum, guiding Miu Miu through normalized growth and establishing the commercial and creative foundations for Versace.
The flagship’s Q2 acceleration is the most important immediate signal. Its scale gives every incremental improvement an outsized effect on group performance. Miu Miu continues to provide growth and cultural influence, even as its extraordinary comparison base recedes. Versace introduces a larger opportunity with heavier execution demands.
That portfolio structure gives Prada Group several routes to growth. It also increases the complexity of capital allocation, brand management and margin control.
The first-half results show that the established business remains profitable and resilient beneath the acquisition effects. The next test begins with Versace: building a stronger full-price model while preserving the operating discipline that produced 22 consecutive quarters of organic growth.