MILAN, Italy — While the global luxury market faced a significant downturn in 2025, the Prada Group managed to resist the trend, reporting a 5 percent increase in annual revenue to 5.7 billion euros.
The group’s resilience was almost entirely driven by the explosive growth of its sister brand, Miu Miu, which has become a favorite among younger consumers (Gen Z and Millennials).
- Surging Growth: Miu Miu’s revenues soared by 35 percent in 2025.
- Flagship Struggles: In contrast, the flagship Prada brand saw a slight sales decline of 1 percent.
- Regional Success: Despite a general slowdown in China, Prada Group saw 6 percent growth in the Asia-Pacific region, its largest market.
The financial results come following Prada’s high-profile 1.25-billion-euro acquisition of the struggling rival Versace.
- Current Status: Versace ended 2025 “in the red” (unprofitable), and the acquisition has left Prada with a debt of 466 million euros.
- New Leadership: To turn the brand around, Prada has appointed designer Pieter Mulier to head the Versace studio and is implementing strict cost-cutting measures.
- CEO Outlook: Chief Executive Andrea Guerra expects a “progressive improvement” starting in fiscal year 2027.
Prada’s performance stands in sharp contrast to other luxury giants that were hit hard by the slowdown in global consumption, particularly in China:
- LVMH: Net profit dropped 13 percent to 10.9 billion euros.
- Kering (Gucci, YSL): Sales fell by 13 percent, with net profits slashed to less than a tenth of previous levels.
