Prada Reports 16% Sales Increase in Q1 2024, Driven by Miu Miu Brand

Prada Group reported a 16% increase in sales at constant exchange rates to €1.19 billion ($1.27 billion) in the first quarter of 2024, driven by the strong performance of its Miu Miu brand. The Italian luxury fashion group's sales growth contrasted with the slowdown seen across much of the luxury sector.

Prada's flagship brand saw a 7% increase in retail sales during the January-March period, while Miu Miu, which accounts for around 15% of total sales, posted an 89% jump. "Miu Miu is seeing exceptional momentum," said Prada Group CEO Andrea Guerra. The company plans to add 10-15 new Miu Miu stores and 5-10 new Prada stores in 2025.

The sales growth was driven by strong performance in Europe and Asia Pacific, particularly in Japan where sales were boosted by tourists. However, the Americas region lagged behind. Leather goods was the product segment that grew the most, with the new Prada Galleria bag selling out.

Why this matters: Prada's ability to defy the luxury slowdown and deliver strong sales growth demonstrates the enduring appeal of its brands, especially Miu Miu. The company's strategic focus on creativity, positioning and communication appears to be paying off as it gains market share in a challenging environment.

Despite the positive results, Prada Group Chairman Patrizio Bertelli acknowledged the company is operating in "a more challenging market environment." However, he stated that Prada delivered a solid performance and is making strategic progress by investing for long-term, sustainable growth while maintaining flexibility to respond to changing industry dynamics.

Guerra emphasized that "sharpness of positioning, creativity and communication" will be critical this year as the luxury industry experiences new dynamics. He said Prada is progressing in its journey towards retail excellence and enriching its product range to drive customer engagement and nurture its brands' desirability. The company retains its ambition to deliver solid, sustainable, and above-market growth in 2024.

Key Takeaways

• Prada Group Q1 2024 sales up 16% YoY, driven by strong Miu Miu performance.
• Miu Miu sales jumped 89%, while Prada brand grew 7% in Q1 2024.
• Growth led by Europe, Asia Pacific; Americas lagged; Leather goods saw highest growth.
• Prada defies luxury slowdown, gains market share through creativity and communication.
• Prada aims for solid, sustainable, above-market growth in 2024 despite challenging market.