Prada’s annual revenues rose 21 percent to €4.2 billion ($4.4 billion) in 2022, the highest level ever, the Milanese fashion group said Thursday. Operating profit jumped 59 percent to €776 million.
Co-founder Patrizio Bertelli, who stepped back as the group’s CEO earlier this year, cited brand heat and client engagement driving “strong and broad-based organic growth” in both Prada and Miu Miu’s stores for the success.
Since the arrival of Raf Simons as co-creative director alongside Miuccia Prada in 2020, Prada has leveraged renewed interest in its fashion offer by re-merchandising its stores to emphasise easy-to-wear wardrobe items like nylon coach’s jackets and leather bombers alongside the brand’s more directional fare, as well as heavier use of its inverted triangle logos across everything from penny loafers to cocktail dresses.
Miu Miu, too, has enjoyed a renaissance since last year with a more collegiate style pinned to its viral cut-off tailoring looks.
The results are a milestone for Prada: the group’s revenues finally topped their previous peak, back in 2013, when the brand’s fashion leadership coincided with broad-based commercial success for its Galleria handbag, booming luxury sales in China (where the brand enjoyed an early-mover advantage) and fresh investment following its IPO.
While sales returned to growth in 2018, the group continued to lag rival megabrands as big French conglomerates snapped up key real estate and marketing placements, and as Prada worked to strengthen its business by trimming distribution (reducing exposure to wholesale and off-price) and invested in catch-up efforts on digital and supply chain.
Late last year, Prada named a new group CEO — former Luxottica boss Andrea Guerra — as well as a brand-level CEO hired from Dior, Gianfranco D’Attis, to help ease the transition of power from designer and controlling shareholder Miuccia Prada, 73, and Bertelli, 76, to their eldest son Lorenzo Bertelli, who they have positioned as the group’s future leader.
The 34 year-old executive has spearheaded shakeups to the companies efforts on digital marketing and sustainability, but having stepped back from his career as a rally driver in 2019 still only has a few years of experience under his belt.
In Prada’s statement, Guerra said he plans to support growth by upgrading the brand’s retail stores and reinforcing clienteling efforts. Rebounding sales to Chinese customers — both domestically and abroad — should also lift Prada’s business in the year ahead.
Prada is set to further comment its results in a presentation to investors Thursday afternoon.
Stay tuned to BoF for updates on this developing story.
