CEO Confident as Prada Prepares for End-of-Year Rush
Strong Quarter Performance: Prada Group celebrates a 10% uptick in retail sales for Q3, amidst what CEO Andrea Guerra calls the “toughest quarter in terms of comparison.”
Year-to-Date Growth: The luxury group boasts a 12% sales increase for the nine-month period ending September 30, total sales reaching 3.34 billion euros.
Unwavering Strategy: Despite global economic fluctuations, Prada’s investment strategy remains steadfast, as Guerra states, “We are ready for the super holiday period… we plan to move on and continue to invest.”
Brands Gaining Traction: Miu Miu shows remarkable growth with a 49% revenue increase, while Prada brand retains strong momentum. Segment Surge: Ready-to-wear leads growth with a 32% increase, as leather goods persist as the top revenue generator.
Prada Group’s CEO, Andrea Guerra, articulated the company’s robust performance and forward momentum, saying, “When brand desirability is coupled with business performance, we are happy.” The third quarter’s success was highlighted by a significant retail sales jump, indicative of the group’s enduring strategy and adaptability.
In a statement that echoed Guerra’s optimism, CFO Andrea Bonini affirmed the group’s commitment to their core strategies and the expectation to grow “above industry average.” Guerra also emphasized the importance of execution during uncertain times: “more focused and precise,” aiming to cement the brand’s position in the market.
Highlighting the group’s progress, Guerra remarked on the continuous journey towards retail excellence, pointing to “11 quarters of uninterrupted full-price, like-for-like sales growth.” He also acknowledged the broader economic and geopolitical challenges but indicated that these have not deterred the group’s ambitious plans for 2024.
Chairman Patrizio Bertelli, although not present during the analysts’ call, provided a statement underlining the group’s strategy, which “delivered solid growth in the first nine months of 2023.” Bertelli further noted the consolidation of the brands’ desirability and acceleration in investments, saying, “Looking ahead, we are focused on enhancing innovation and dynamism.”
The sales results for Prada and Miu Miu have been especially promising, with Guerra commenting on Miu Miu’s exceptional performance: “With this kind of performance, we must be humble, there is no place for complacency, and we must keep our journey straight going forward.”
Prada’s commitment to strategic pricing and product expansion was also discussed. Guerra expressed, “The first conversation has to be about the entry price to be more competitive… but the top of the range needs substance for desirability and long-term value.”
The global financial landscape, marked by currency fluctuations and geopolitical tensions, was acknowledged by the group’s executives, with a particular nod to the remarkable response to Prada’s recent expansion into makeup and skincare—a move expected to drive growth in the coming years.
Finally, analysts such as Luca Solca from Bernstein recognized Prada’s “significant positive momentum.” Solca commented on the quarterly growth, highlighting that it was “slightly above consensus.”
The report concluded with a reflection on the various regional markets. Asia Pacific and Europe showed resilience and growth, with Japan and the Middle East delivering particularly strong performances. The Americas experienced a slight downturn, yet this was seen as an improvement over the previous quarter.