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Prada reveals CEO succession plans as sales surpass 2019 levels

By Huw Hughes

Nov 22, 2021

Management

Image: Prada

Prada CEO Patrizio Bertelli has revealed he could hand over the reins at the luxury Italian label to his son Lorenzo Bertelli within the coming three years.

He described his 33-year-old son, who is currently Prada’s marketing director and head of corporate social responsibility (CSR), as having “the right attitude” for the top job, at the Prada Foundation compound in Milan on Thursday.

He added that “it will be up to him to decide” when to take over.

Bertelli also revealed Prada had no plans to link up with any global luxury conglomerates, nor was it seeking a financial investor as it doesn’t need additional capital.

“I’ve always been interested in buying, never selling,” the 75-year-old said. “I still have my Vespa Primavera, my Honda motorcycles. They are still with me, all of them, I am not a seller of anything.”

The Bertelli family currently owns about 80 percent of the luxury giant.

Prada online sales surge in Q3

The succession plans were revealed on Prada’s Capital Markets Day, during which the company also revealed ambitious plans to increase annual revenue from 3.2 billion euros to 4.5 billion euros in the medium term.

In that same time frame, the company wants to double its online penetration to 15 percent of retail revenues.

It comes as the label’s online sales are already booming. The company revealed Thursday that sales through its online channel increased by 400 percent in the third quarter compared to the same period in 2019.

Retail sales in the same period were up 18 percent compared to two years ago, and the brand said it improved profitability across key metrics.

Prada said its “strong” sales momentum continued in its most recent trading.

“The Prada Group has a thoughtful and pioneering vision of fashion. At a time of significant cultural and societal change, luxury needs to continue evolving coherently with the market,” Bertelli said.

“Our dialogues and fluid perspectives continually reinterpret luxury. By being relevant, sustainable and impactful, we will drive long-term growth.”