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Italy's Prada Group's revenue jumps 21% YoY in FY22

10 Mar '23
3 min read
Pic: Shutterstock
Pic: Shutterstock

Italian luxury fashion house Prada Group has reported net revenues of €4.2 billion, up 21 per cent year-on-year (YoY) at constant currency, in fiscal 2022 (FY22), driven by Prada and Miu Miu brands. The retail channel of the company performed remarkably well throughout the year, with sales up 24 per cent YoY to €3.7 billion driven by like-for-like, full-price sales.

Growth was seen across all product categories, including leather goods (18 per cent), ready-to-wear (27 per cent), and footwear (29 per cent). The online sales channel also saw double-digit growth due to investments made in improving the omni-channel experience. Both Prada and Miu Miu brands contributed positively to the overall sales growth of the company.

In particular, Prada brand’s revenues grew by 25 per cent YoY, demonstrating sustained brand momentum. Miu Miu’s revenues were up 20 per cent YoY with a sharp acceleration in the second half of the year (H2), driven by highly successful products, fashion shows, and events, Prada Group said in a press release.

The company's gross margin stood at 78.8 per cent of revenues, equal to €3.3 billion. The EBIT adjusted margin was 20.1 per cent of revenues, equal to €845 million. The net cash position of the company was strengthened to €535 million.

The company's retail sales growth was balanced across geographies, except for Asia Pacific which declined by 2 per cent YoY to €1,232 million due to the impact of multiple lockdowns in China. However, this decline was offset by strong performances in Korea and Southeast Asia. A strong performance in Europe saw broad-based, sharp growth of 63 per cent, sustained by domestic sales. The Americas generated growth of 22 per cent over the year, with a normalisation in H2 due to increasingly strong comparatives and outbound tourist flows. Japan grew 31 per cent, with an acceleration in H2, and the Middle East also saw solid growth throughout the year, up 23 per cent in total.

The company further strengthened its environmental, social, and governance (ESG) to accelerate progress against its strategy. In FY22, the group focused on reducing Scope 1 and 2 emissions, with investments in renewable energy, electrification of industrial sites’ heating systems, green company car fleet, and self-produced energy from owned photovoltaic systems.

Patrizio Bertelli, executive director, said: “Prada Group delivered excellent results in 2022, underpinned by brand momentum, greater client engagement and rigorous strategy execution. The retail channel drove our performance, achieving strong and broad-based organic growth at both Prada and Miu Miu. We performed well across all product categories and geographies, more than offsetting weakness in China due to COVID-19. We continued to develop our sustainability capabilities and activities, ensuring they remained linked to the identities of our brands and relevant to our clients.

“The recent changes to our governance structure mark a fundamental evolution for the group. In 2022, we further strengthened our positioning and our organisation, and in the current year we will accelerate the execution of our strategy. We intend to stay on a path of steady and sustainable growth as we work towards the full potential of our brands.”

Fibre2Fashion News Desk (DP)

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