The Prada Group’s sales have reached a “plateau” in the first quarter.
In the initial quarter that concluded on March 31, 2025, Prada Group reported earnings of €1.34 billion, representing a year-on-year increase of 13%, according to the company’s statement released on Wednesday.
Even though I am pleased to have achieved these results, the marketplace is not an easy place to be. During a call with investors, Andrea Guerra, the CEO of the firm, said that it is difficult to provide an educated response to the present trading status because of the irregular times that we experience. “This year is one that is not only highly strange but also quite complex. We are going to keep engaging in physical conflict, and we will strive to maintain an atmosphere that is favorable to both brands.
At a time when the luxury industry was experiencing a general downturn, Prada Group emerged as a single of the few victors, and the previous year had an all-time high for the company. The Prada Group made the announcement in April that it intended to purchase Versace. It is anticipated that the transaction will be finalized in the latter part of the year 2025, provided that regulatory permission is obtained. It seems that momentum may be beginning to slow down, as seen by the most recent quarter. “It is without a doubt that the past nearly twenty-four months have not been simple, and as of late, I believe that perhaps we have arrived at the lowest plateau that we have ever reached,” Guerra said.
The retail sales of the Prada brand remained unchanged, which was 1.74 percentage points lower than the estimate of analysts. Miu Miu declared a sixty percent increase in retail sales, despite the fact that the comparison was difficult (the brand practically doubled its year-on-year sales growth each quarter in 2024). Throughout the course of the previous year, Guerra had cautioned investors that he did not anticipate the surge in Miu Miu’s stock to continue indefinitely, and that the primary emphasis was on generating growth that was both long-lasting and sustainable.
The increase in group retail sales was led by like-for-like full-price sales, which resulted in a 13 percent increase to €1.22 billion. At €96 million, wholesale revenue increased by 7% compared to the previous year.
An increase of ten percent was seen in sales in the Asia-Pacific area. It was said by Guerra that Chinese consumers were volatile; nonetheless, the slowdown within this consumer category was mostly with local purchases, while travel transactions continued to be favorable. As a result of both domestic and visitor expenditure, Europe had a fourteen percent increase. Despite the fact that the comparison was difficult, sales in Japan increased by 18 percent, while sales in the Middle East increased by 26 percent. In spite of the volatility in the market, the Americas saw a growth rate of ten percent. Despite his optimistic outlook on the United States, Guerra informed investors that he predicts a lower currency and that market uncertainties may have an effect on consumers in the United States.
Regarding the pricing strategy of the group, Guerra made the following statement regarding the strength of the euro in comparison to the dollar and the Chinese yen: “We have talked regarding our maintenance pricing strategy of between two and four points every six months, and we are still deciding what to do in June and July, and by that time, we will also have to comprehend what happens with tariffs.” It is clear that we will be required to make some adjustments to the price, although I am not certain of the precise amount at this time.