Prada Group defies luxury slowdown with sales up double-digits

Prada Group has reported a 15% increase in net revenue for the nine months ending 30 September 2024, bucking the luxury slowdown trend that has hit LVMH and Kering. 

The company delivered revenue of £3.1 billion (€3.8 billion), driven by "strong brand identity, creative dynamism and sound execution".

As part of this, retail sales increased 15% to £2.8 billion (€3.425 billion) and wholesale lifted 8% to £242 million (€291 million).

It also achieved growth in Asia Pacific (9%), Japan (40%), the Middle East (24%) and Americas (7%), as well as Europe (16%), which was supported by both domestic and tourist spending.

The desirability of the Prada brand continued to draw strength from its consistent creative identity and polyhedric brand equity.

Its positive performance was supported by a "well-balanced" category mix, with a continuous enrichment of the leather goods offer, and good traction across ready-to-wear and footwear.

Meanwhile, fellow luxury brand Miu Miu further capitalised on its sharp positioning, built on a "strong" and "distinctive" identity.

Andrea Guerra, CEO of Prada Group, said: "We progressed through the year with another quarter of high-quality growth.

"Our brands remain desirable and relevant, thanks to the strength and consistency of their identity, creativity and sharp positioning. Prada recorded a solid performance, showing resilience against sector headwinds, and Miu Miu upheld its growth momentum.

"Despite the challenging backdrop, we are confident in our ability to navigate the industry complexities, and remain committed to our ambition to deliver solid, sustainable and above-market growth."

It comes amid a slowdown in the wider luxury sector, with both Kering and LVMH having recently reported a slump in sales.

Kering's revenue decreased 15% in the third quarter, while LVMH reported a 2% drop in revenue for the first nine months of 2024.

Read TheIndustry.fashion's recent feature 'LVMH thinks the luxury downturn is a blip, can it be so sure?' to learn more here.