Prada Q1 revenue rises on Americas strength

Prada Group reported first-quarter revenue of 1.3 billion euros, a 3% increase at constant exchange rates. The performance was supported by growth in key retail markets but was held back by softer trading conditions in some regions.

The company said the main driver of the quarterly advance was the Americas, where demand remained firm despite a more challenging backdrop for parts of the global luxury sector.

Retail sales in the Americas grew 15% organically, supported by strong local demand. This outpaced the group’s overall growth rate and helped offset weaker trends elsewhere.

The robust performance in the region highlighted the importance of local customers, as Prada navigated a mixed environment for international luxury spending.

In contrast with the Americas, sales in Europe declined by 6% in the first quarter. The group’s overall performance was affected by a softer luxury market and geopolitical pressures.

Prada also experienced a significant drop in sales in the Middle East, where demand was particularly affected by the broader market slowdown and regional tensions.

Versace contributed 143 million euros to Prada’s quarterly revenue as its integration into the group continues. The brand is shifting its focus towards full-price sales as part of the strategy.

This contribution underlined the role of acquired brands in Prada’s revenue base while the group works to align Versace more closely with its own commercial and pricing approach.

Despite the 3% revenue increase, Prada’s results reflected contrasting regional trends, with strength in the Americas partially offset by weakness in Europe and the Middle East.

The group aims to maintain momentum in its core markets while managing the effects of geopolitical pressures and a softer luxury environment on its broader global footprint.