Miu Miu helps Prada resist luxury market downturn
- Miu Miu revenues grew by 35 percent in 2025 while the flagship brand, Prada, saw sales fall by one percent over the year
MILAN: Italy’s Prada withstood a downturn in the luxury market in 2025 by growing its revenue by 5 percent year-on-year to 5.7 billion euros, company results released on Thursday showed.
Prada’s performance was based largely on its Miu Miu brand, which targets younger consumers.
Miu Miu revenues grew by 35 percent in 2025 while the flagship brand, Prada, saw sales fall by one percent over the year.
“Prada showed good resilience, proving to be on a solid strategic stance; Miu Miu delivered yet another year of remarkable growth,” chief executive Andrea Guerra said in a statement.
Prada last year acquired its struggling rival Versace, which ended 2025 in the red and is expected to dilute Prada’s margins over the coming months.
But Guerra said he was counting on “progressive improvement from fiscal year 2027 onwards”.
Following the 1.25-billion-euro acquisition, Prada is now in debt to the tune of 466 million euros.
The new owner has appointed designer Pieter Mulier to head the Versace studio, and has said it has “decisive measures” to cut costs.
Prada group, which also owns the footwear brands Car Shoe and Church’s, continued to make progress in its main market, Asia-Pacific, with sales growth of six percent in 2025.
The slowdown in global luxury consumption, particularly in China, hit most of Prada’s competitors in 2025, with declines in both sales and profits.
The giant LVMH reported a 13 percent drop in net profit in 2025 to 10.9 billion euros, and a 5 percent decline in revenue to 80.8 billion euros.
Kering, which is undergoing restructuring and owns the brands Gucci, Yves Saint Laurent, Bottega Veneta and Balenciaga, announced a 13 percent fall in sales and net profit slashed to less than a tenth of its previous level.
Comments