Prada Group increases annual profits by 44 percent

The Italian fashion group Prada SpA can look back on another successful financial year thanks to the continued popularity of its brands Prada and Miu Miu. On Thursday, the company announced that it was also able to achieve significant increases in sales and earnings in 2023.

Accordingly, the Prada Group’s consolidated sales last year amounted to almost 4.73 billion euros. This corresponded to an increase of 13 percent compared to 2022. Adjusted for exchange rate changes, the growth rate was 17 percent.

In its own retail business, sales rose by twelve percent (currency-adjusted +17 percent) to 4.19 billion euros, not least thanks to good business from the Miu Miu label (+58 percent), and in the wholesale business they grew by twelve percent (currency-adjusted +13 percent). 433 million euros. License income rose by 36 percent to 104 million euros.

Strong growth in all other regions can more than offset weaker demand in America

Retail sales developed particularly dynamically in Japan, where they rose by 31 percent (currency-adjusted +44 percent) to 484 million euros. In the other markets of the Asia-Pacific region they increased by 17 percent (currency-adjusted +24 percent) to 1.45 billion euros, in Europe by ten percent (currency-adjusted +14 percent) to 1.31 billion euros and in the Middle East eight percent (currency-adjusted +10 percent) to 180 million euros.

The fashion house only weakened in America: there retail sales fell by two percent to 767 million euros. However, adjusted for currency effects, they were roughly at the level of 2022.

In addition to the strong sales growth, an increase in the gross margin contributed to earnings before interest and taxes (EBIT) improving by 37 percent to 1.06 billion euros. Adjusted for special effects, it exceeded the previous year’s level by 26 percent. The net profit attributable to shareholders increased by 44 percent and reached 671 million euros.

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