In 2023, the net profit of luxury Italian conglomerate Prada surged by 44 per cent to €671 million. This impressive growth was largely attributed to robust sales expansion in Asia, the group's primary market, coupled with a highly successful fourth quarter.
The brand's sales surged by 13 per cent to €4.7 billion, primarily driven by the performance of its luxury labels Prada and Miu Miu, the latter catering to a younger demographic and often characterised as its rebellious counterpart.
Miu Miu experienced a remarkable surge in retail sales, escalating by 58 per cent throughout 2023 and peaking at 82 per cent growth in the fourth quarter across all product categories and regions. Meanwhile, Prada observed a commendable 12 per cent increase in retail sales for the year, exceeding the market average, with a 10 per cent uptick in the final quarter.
Patrizio Bertelli, President and CEO, credited the outstanding performance to an ‘excellent creative vision’ and emphasised the company's commitment to sustaining high-quality growth in revenue and margins through increased investments to foster future expansion.
Prada reported an operating profit (Ebit) of €1,060 million, marking a substantial 37 per cent surge.
Sales in the Asia-Pacific region, Prada's largest market, surged by 17 per cent to €1.4 billion, with a 24 per cent increase at constant exchange rates, despite challenges posed by store closures in China during periods of confinement. Japan witnessed the most significant sales growth, soaring by 31 per cent to €484 million, driven by local demand and tourist influx.
European sales climbed by 10 per cent to €1.3 billion, buoyed by domestic demand and tourism, while the Middle East reported an 8 per cent increase in sales, despite escalating geopolitical tensions. The only setback was a 2 per cent decline in sales to the US market, amounting to €767 million.
Looking ahead to 2024, Andrea Guerra, CEO acknowledged the potential variability in quarterly growth trends but reiterated the company's steadfast ambition to sustain solid and sustainable growth, surpassing market averages.
