Prada Group hails ‘strong start to year’ as Q1 sales jump 22 percent

Prada Group has hailed a “strong start of the year” with growth across markets and product categories, as well as a rebound in demand in China.

The Italian group, which owns its namesake brand as well as luxury label Miu Miu, made sales of 1.07 billion euros in the three months ended March 31, up 22 percent from the 876 million euros it made a year earlier.

The company saw retail sales increase 23 percent to 953 million euros in the quarter, driven by like-for-like and full price sales.

It came as the fashion group saw a return to growth in China, contributing to a 22 percent increase in retail sales in its biggest market, Asia Pacific, which reached 360 million euros. Retail sales in Japan, meanwhile, surged 44 percent to 113 million euros.

Growth across markets and categories

Looking at its second biggest market, Europe, retail sales jumped 26 percent to 259 million euros, while retail sales in America rose 10 percent to 174 million euros, and retail sales in the Middle East were up 20 percent.

Prada also saw double-digit growth in constant exchange rates across categories, with leather goods up 14 percent, ready-to-wear up 38 percent, and footwear up 20 percent.

Group CEO Andrea Guerra told investors: “Prada Group has had a positive start to the year. Over the course of the first quarter, China returned to be an engine of growth, driving a solid sales rebound in Asia Pacific.”

Looking ahead, he said the group’s priority for the year “remains increasing store productivity, focusing on retail execution”, while it will also “continue to invest behind our brands, our stores, and our infrastructure for the growth of tomorrow”.

However, he noted that “the ever-evolving macro and market backdrop requires us to be vigilant, but we see benefits in accelerating these investments, if conditions remain supportive”.