A man sits on a bench reading a newspaper next to a billboard of Italian luxury fashion brand Prada, on Navona Square on April 27, 2025. (Photo by Stefano RELLANDINI / AFP)
Milan, Italy: Luxury fashion group Prada said Thursday its revenues rose 6 percent in the first quarter, without accounting for currency fluctuations, helped by more full price sales and the contribution of Versace.
The group posted total revenues of 1.428 billion euros ($1.67 billion) in the quarter ended March 31, versus 1.341 billion euros a year earlier, amid what the company called "intensifying geopolitical and macroeconomic tensions".
In the Middle East, retail sales for the group as a whole fell by 22 percent on a constant currency basis, and 30 percent as reported.
It was the first quarter that Prada has included within its results its newly acquired Versace brand, which contributed net revenues of 143 million euros.
Overall group results in the quarter "extended the trend of steady progressive improvement in full price sales", the Italian company said in a statement.
The 6-percent revenue rise was on a reported basis, but rose by 14 percent on a constant currency basis, and in line with the 1.429 billion euros in revenue expected on average by FactSet.
Prada warned, however, that its successful Miu Miu secondary line faced a "more pronounced adverse impact" from the war in the Middle East, its retail sales rising just 2.4 percent in the quarter.
That compared with a year-ago quarterly revenue rise of 60 percent for Miu Miu, whose stellar sales have helped buoy the brand in recent years.
Significant growth in the Americas for Miu Miu was partially offset by a slowdown in Europe, particularly in Italy and France, due to a decline in tourist spending, it said.
Retail sales at the Prada brand ticked up just 0.4 percent in the quarter.
Prada Chief Executive Andrea Guerra told analysts in a conference call that the company was better focusing on a clear separation between its entry-level offerings, "with a mission to attract new customers to our brands", and its high-end fashions.
Prada's integration of Versace, which it acquired last year, was "progressing well", with work on organisation and processes under way ahead of the coming "next creative phase," said Prada Chief Executive Andrea Guerra in a statement.
Newly named creative director Pieter Muller will put his personal stamp on upcoming Versace collections for 2027.
Versace sales were "in line with expectations" the company said, as it seeks to reposition the brand towards full-price sales while improving quality.
In 2025, Prada weathered the downturn in the luxury market that has affected most of its competitors by continuing to grow its revenue to 5.7 billion euros, up 5 percent, with profit growth of 2 percent to 852 million euros.
