Prada reports strong growth across brands and markets
The Prada S.p.A. net revenues of 4.2 billion euros, increased 21 percent in the year to December 31, 2022, while retail sales of 3.7 billion euros were up 24 percent.
The company reported continued strength across all product categories with leather goods up 18 percent, ready to wear, up 27 percent and footwear up 29 percent.
Gross margin was 78.8 percent of revenues, equal to 3.3 billion euros and adjusted EBIT margin was 20.1 percent of revenues, equal to 845 million euros.
Commenting on the trading results, Prada Group executive director, Patrizio Bertelli said: “Prada Group delivered excellent results in 2022, underpinned by brand momentum, greater client engagement and rigorous strategy execution. The retail channel drove our performance, achieving strong and broad-based organic growth at both Prada and Miu Miu. We performed well across all product categories and geographies, more than offsetting weakness in China due to Covid-19.”
Prada posts growth across core brands and markets
The company’s online sales saw double-digit growth, while penetration remained stable at 7 percent of retail Sales. Prada revenues grew by 25 percent and Miu Miu revenues were up 20 percent with a sharp acceleration in H2, driven by highly successful products, fashion shows and events.
Among geographies, the company said, Asia Pacific declined by 2 percent to 1,232 million euros impacted by multiple lockdowns in China offset by the strong performance in Korea and South-East Asia. The region returned to moderate growth in H2, with sales up 3 percent.
A strong performance in Europe saw growth of 63 percent, sustained by domestic sales and an uptick in tourism throughout the year. The Americas generated growth of 22 percent over the year with a normalisation in H2 due to the increasingly strong comparatives and outbound tourist flows. Japan grew 31 percent, with an acceleration in H2, and the Middle East also increased 23 percent in total.
“I have joined the Prada Group at an exciting time of evolution, and I have found great energy. We will further invest in the desirability of our brands, in the renovation of our retail network and in manufacturing capabilities. In 2023, we expect revenue growth to remain solid and above market average. China has restarted to be an engine of growth; however, in this ever-changing scenario, we will remain vigilant and maintain a disciplined approach to costs and capital allocation,” added Andrea Guerra, Prada Group chief executive officer.
The company’s board of directors plans to propose a dividend distribution of 0.11 euros per share.