The Prada Group showcased an exceptional performance for 2023, unveiling impressive figures in its financial report released on Thursday. The report revealed a remarkable 58 percent surge at the Miu Miu brand, alongside robust business operations in Asia Pacific and Europe, and an outstanding performance in Japan.
Over the 12 months leading up to December 31st, Prada Group revenues ascended by 13 percent, reaching 4.72 billion euros compared to 4.2 billion euros in 2022. At constant exchange rates, sales experienced a 17 percent rise.
Net profit soared by 44.3 percent, totaling 671 million euros, as opposed to 465 million euros in the preceding year.
Chairman and Executive Director Patrizio Bertelli expressed satisfaction with the strong results achieved in 2023, emphasizing the desirability of the group’s brands. He stated, “The group delivered high-quality growth in revenue and profits, building on outstanding creative momentum, further improving its profitability and stepping up investments to support the growth of tomorrow.”
Retail sales for the year amounted to 4.2 billion euros, marking a 12 percent increase from 3.73 billion euros in 2022. The group observed a notable acceleration in the fourth quarter, with sales rising by 17 percent at constant exchange rates, reflecting solid underlying growth and a more favorable comparison basis in China.
Retail sales for the Prada brand grew by 12 percent year-on-year, with a 10 percent increase in the fourth quarter, surpassing the third quarter performance across all categories.
Miu Miu retail sales witnessed an impressive surge of 58 percent, supported by all categories and regions, culminating in an 82 percent jump in the fourth quarter.
The group achieved 12 consecutive quarters of like-for-like growth, driven by full-price sales, resulting in significant improvements in productivity, which remains a key priority for the future.
“We have successfully delivered on our ambitions in 2023, with excellent performance achieved consistently through the year, as brand desirability grows stronger fuelled by a combination of product, communication and retail initiatives. Retail productivity and profitability improved for the third consecutive year, thanks to once again strong double digit, like-for-like growth,” said Andrea Guerra, Prada Group chief executive officer.
Wholesale revenues increased by 12 percent to 433 million euros, while royalties experienced a substantial growth of 36 percent, reaching 104 million euros.
Operating profit surged to 1.1 billion euros compared to 776 million euros, with a margin of 22.5 percent on sales.
Retail sales in Asia Pacific witnessed a 17 percent growth to 1.44 billion euros, with a 24 percent increase at constant exchange rates.
European sales saw a 10 percent rise to 1.31 billion euros, primarily driven by strong domestic and tourist spending.
Sales in the Americas experienced a slight decline of 2 percent to 767 million euros but remained flat at constant exchange rates.
Japan emerged as the best-performing region in 2023, with a growth of 31 percent to 484 million euros, primarily driven by local clients and an increasing presence of tourists.
Despite intensified geopolitical headwinds, the Middle East delivered a solid performance, up 8 percent in the year.
The net cash position stood at 197 million euros after 759 million euros of capital expenditures cash-out, including strategic real estate investments.
