Financial Performance - The net revenue for the year ended December 31, 2023, was €2,552 million, an increase of 1.7% compared to €2,509 million in the previous year[13]. - Gross profit margin increased to 67.9%, up from 67.0% in the previous year, reflecting a growth of €53 million[14]. - EBIT decreased to €850 million, representing 33.3% of net revenue, down from 38.6% in the previous year due to increased operating expenses[14]. - Operating expenses rose to €882 million, accounting for 34.6% of net revenue, primarily due to increased marketing activities and personnel costs[14]. - The company reported a net income distribution of €350,558,888.00 as a final dividend, equating to €0.137 per share, and €216,181,596.21 retained in earnings for the year ending December 31, 2023[39]. - Net income for the year was €566,740,484, down from €571,683,175 in 2022, representing a decrease of about 0.8%[95]. - The company paid dividends totaling €281,471,000 in 2023, an increase from €179,118,000 in 2022, reflecting a commitment to returning value to shareholders[96]. Strategic Initiatives - The company reported significant progress in strategy, organization, and digital development, reflecting the resilience of the luxury goods sector[9]. - Prada's strategic initiatives are aimed at enhancing customer experience and expanding market presence through unique offerings and collaborations[9]. - The company continues to focus on digital transformation initiatives to support operational and revenue growth, including omnichannel capabilities and ERP integration[12]. - The company has established a risk management system to manage, forecast, and mitigate risk exposures, ensuring long-term sustainable business development[25]. - The company is committed to maintaining high standards of corporate governance to create long-term sustainable value for stakeholders[41]. Sustainability Efforts - The company achieved a 58% reduction in Scope 1 and 2 greenhouse gas emissions compared to the 2019 baseline[12]. - The company is actively promoting a culture of sustainability through internal and external initiatives, such as Sea Beyond and Forestami Academy[33]. - The company has established a clear roadmap for its sustainability strategy, focusing on greenhouse gas reduction and the use of low-impact materials[1]. - The company is focusing on mid-term goals and internal KPIs to monitor progress, particularly in reducing carbon emissions and transitioning to environmentally friendly materials[33]. Corporate Governance - The board consists of 11 directors, with 6 executive and 5 independent non-executive directors, and approximately 36% of the board members are women[44]. - The company has established written procedures regulating securities trading by directors and employees with insider information, ensuring compliance with standard codes[43]. - The board held six meetings in 2023 to discuss corporate strategy, evaluate financial performance, and approve major investments, with an average attendance rate of 83.33%[48]. - The company emphasizes the importance of corporate culture as a foundation for long-term business success and sustainable growth[52]. - The board's composition includes family relationships, with Miuccia Prada Bianchi and Patrizio Bertelli being spouses, and their son Lorenzo Bertelli also serving as an executive director[57]. Risk Management - The company faces risks related to employee health and safety, product quality, and environmental regulations, which could impact financial status and reputation[1]. - The company manages credit risk through monitoring customer creditworthiness and implementing insurance contracts[34]. - The company employs derivatives like interest rate swaps to mitigate interest rate risks affecting future cash flows[35]. - The company has established credit risk management strategies to monitor and verify customer reliability and repayment capacity[166]. Investments and Acquisitions - The company acquired a minority stake in Italian family business Luigi Fedeli e Figlio S.r.l., known for high-quality knitwear, demonstrating commitment to protecting Italian craftsmanship[12]. - The company invested €390 million in Prada USA Corp for the acquisition of a strategically valuable real estate asset located at 724, 5th Avenue, New York, which currently houses a Prada store[19]. - The company completed several mergers in 2023, including the integration of Church's brands into Prada entities, enhancing operational synergies[135]. - Investments in subsidiaries and associates rose to €1,312,798,000 as of December 31, 2023, compared to €793,436,000 in the previous year, indicating significant growth in investment value[198]. Financial Position - The company’s total equity as of December 31, 2023, was €2,842 million, an increase from €2,563 million in the previous year[16]. - The company’s net financial position showed a surplus of €65.7 million, down from €389.8 million in the previous year[16]. - The debt-to-equity ratio improved to -2.1% from -15.5% in the previous year, indicating a stronger financial position[16]. - As of December 31, 2023, total assets increased to €4,746,880,745, up from €4,631,226,949 in the previous year, representing a growth of approximately 2.5%[92]. Operational Highlights - The company emphasized strict execution and optimized organization as key factors in maintaining brand appeal and global visibility[9]. - The balanced product category mix contributed to growth and stability, driven by successful fashion shows and collections[9]. - The company invested €113,447,000 in property, plant, and equipment in 2023, compared to €88,904,000 in 2022, indicating an increase in capital expenditures[96]. - The company has established specific teams to manage real estate activities, ensuring strategic retail locations are secured and maintained[29]. Market and Customer Engagement - Prada successfully launched exclusive collaborations, including the "Adidas Football for Prada" collection and a partnership with Axiom Space for NASA's Artemis III mission[9]. - The brand hosted a series of impactful events, such as Prada Extends in Bangkok and the Pradasphere II exhibition in Shanghai, enhancing global brand experience[9]. - Prada's innovative approach and ability to interpret contemporary trends have been pivotal in driving sales and customer engagement[9]. - The company invests in regular store renovations and employee training programs to improve customer experience and brand image[28].

Financial Performance - Prada Group achieved revenue of €4.7 billion, representing a growth of +17% at constant exchange rates[12]. - Retail sales amounted to €4.2 billion, also reflecting a +17% increase at constant exchange rates[12]. - EBIT reached €1.062 billion with an EBIT margin of 22.5%, showing a +37% increase at current exchange rates[12]. - Net income for the group was €671 million, marking a +44% growth at current exchange rates[12]. - The company reported a net operating cash flow of €726 million[12]. - Prada Group's net sales reached €4,726,411 thousand for the year ending December 31, 2023, representing a 12.5% increase from €4,200,674 thousand in 2022[70]. - The adjusted EBIT for the year was €1,061,692 thousand, accounting for 22.5% of net sales, up from 20.1% in the previous year[72]. - The net income attributable to the group was €671,026 thousand, a 44.2% increase from €465,193 thousand in 2022[70]. - The company reported a significant increase in operating cash flow, with a net amount of €725,596 thousand compared to €695,527 thousand in the previous year[72]. - The group’s gross profit margin improved to 80.4%, compared to 78.8% in the previous year, reflecting effective cost management[70]. - The company achieved continuous retail growth for 12 consecutive quarters, driven by full-price and year-on-year sales increases[74]. Retail and Market Expansion - The group operates 606 directly operated stores across over 70 countries[15]. - Prada's retail sales for the brand increased by +12%, while Miu Miu saw a significant growth of +58%[8]. - The company opened 26 new stores and closed 32 stores, ending the year with a total of 606 directly operated stores[76]. - The Asia-Pacific region saw retail sales net amount rise by 17.4% to €1,446,146 thousand, up from €1,231,659 thousand[79]. - Retail sales in the Asia-Pacific region increased by 24%, with Japan showing the highest growth at 43.8%[85]. - The company completed approximately 130 renovation and reset projects in its retail network during the year[76]. Sustainability and Ethical Practices - Sustainability remains a core part of the company's strategy, aiming to be a "driver of change" in various business aspects[10]. - The sustainability strategy is built on three pillars: Earth, People, and Culture, aiming to reduce environmental impact and promote diversity[55]. - The company has set greenhouse gas reduction targets recognized by the Science Based Targets initiative (SBTi) for scopes 1, 2, and 3[55]. - Prada Group's mission is to drive change for the planet, people, and culture, integrating sustainability into its core business strategy[20]. - The group has adopted a zero-fur policy across all brands and joined the Fashion Pact, reinforcing its commitment to ethical practices[34]. - In 2023, Prada launched its first jewelry collection made from 100% certified recycled gold, emphasizing its focus on sustainability[35]. - The company has made significant progress in environmental sustainability, reducing Scope 1 and 2 greenhouse gas emissions by 58% compared to the 2019 baseline[77]. - The company has invested in sustainable aviation fuel (SAF) credits to accelerate decarbonization in the aviation sector[77]. Corporate Governance and Leadership - Prada Group's board of directors includes Patrizio Bertelli as Chairman and CEO, alongside other executive members, ensuring strong leadership and governance[65]. - The board of directors consists of eleven members, including six executive directors and five independent non-executive directors[128]. - The board is committed to maintaining a strong governance structure with a mix of experienced executives and independent directors[128]. - The company emphasizes the importance of cultural and sporting interests in its brand identity and business strategy[128]. - The board's diversity policy emphasizes that diversity should not be limited to gender, reflecting a broader commitment to inclusivity[194]. - The company has established a comprehensive audit plan and sustainability report for the fiscal year 2023[198]. Strategic Initiatives and Future Outlook - Future strategies will focus on expanding the retail network and enhancing operational excellence[9]. - The company continues to explore opportunities for growth through potential mergers and acquisitions in the luxury sector[60]. - Prada Group's strategic focus includes enhancing its brand presence through new product development and market expansion initiatives[60]. - The company aims to enhance brand appeal and retail performance in 2024, despite geopolitical and macroeconomic uncertainties[126]. - Future product development and technological advancements are key priorities for the company to maintain competitive advantage[138]. Employee and Talent Management - The company has a total of 14,876 employees as of December 31, 2023, with 40% located in Italy and 63% of the workforce being female[155]. - Prada Group's significant investment in employee training and development aims to preserve craftsmanship and foster new talent[56]. - The company emphasizes talent retention and development through training programs and performance management processes to ensure operational quality[103]. Financial Management and Risk - The company manages credit risk through monitoring customer creditworthiness and debt repayment ability, and has implemented various preventive measures to enhance cash management efficiency[111]. - The company faces liquidity risk, which is managed by the board and the finance director, ensuring that financial resources are optimized to meet financial obligations[112]. - The company has implemented a risk management system to address various risks, including those related to the rapidly changing luxury goods industry and brand appeal[100]. - The company has established a tax risk management system that includes ongoing dialogue with tax authorities in the countries where it operates, aiming to minimize potential uncertainties related to tax risks[114]. Shareholder and Financial Structure - The group proposed a final dividend of €350,558,888 for the fiscal year 2023, equating to €0.137 per share, subject to shareholder approval[159]. - As of December 31, 2023, the distributable reserves available for shareholders amount to €1,951.7 million[159]. - The company has no current plans for the purchase, sale, or redemption of its listed securities during the fiscal year 2023[159]. - The company’s total lease liabilities amounted to €2,110.9 million, slightly increasing from €2,107.6 million in 2022[94].

Investment Rating - The report maintains a BUY rating on Prada SpA, indicating a potential return of over 15% over the next 12 months [2][16]. Core Insights - Prada's 4Q23 net revenue grew by approximately 18.1% year-over-year, driven by a remarkable 82% growth in the Miu Miu brand, surpassing expectations [2]. - The company reported strong growth across all regions, particularly in Japan (cFX +38%) and APAC (cFX +32%), while the US showed sequential improvement [2]. - Management confirmed positive sales momentum has continued into 2024, with expectations of sustained growth despite challenging market conditions [2]. - Prada plans to implement routine price hikes of 4-8% in 2024, focusing on clothing and leather goods, which is expected to support long-term margin expansion [2]. - The closure of outlet stores is progressing, with this segment contributing only about 10% to overall sales, set to be phased out in the next 2-3 years [2]. Financial Summary - Revenue is projected to grow from EUR 4,726 million in FY23A to EUR 5,091 million in FY24E, reflecting a year-over-year growth of 7.7% [3]. - Net profit is expected to increase from EUR 671 million in FY23A to EUR 739 million in FY24E, with a year-over-year growth of 10.1% [3]. - The report indicates a gross margin of 80.8% for FY24E, with EBIT margin projected at 22.9% [8]. - The target price for Prada is set at HK$65.2, representing a 17.1% upside from the current price of HK$55.7 [4]. Earnings Revisions - The earnings estimates for 2024E have been revised to reflect a revenue increase to EUR 5,091 million, up from EUR 5,008 million previously [7]. - Gross profit estimates for 2024E have been adjusted to EUR 4,113 million, indicating a 2.0% increase from prior estimates [7]. - Net profit for 2024E is now projected at EUR 739 million, a slight increase from the previous estimate of EUR 732 million [7].

Financial Performance - Prada Group reported a net revenue of €4,726.4 million, an increase of 17.2% compared to 2022 at constant exchange rates[2]. - Retail sales net revenue increased by 17.2% at constant exchange rates compared to 2022[2]. - Retail sales net revenue for the Prada and Miu Miu brands increased by 12.1% and 58.2% respectively at constant exchange rates[2]. - EBIT was €1,061.7 million, representing 22.5% of net revenue, an increase of 36.8% from €776 million (18.5% of net revenue) in 2022[2]. - Net income for the group was €671 million, a 44.2% increase compared to 2022[2]. - The group's net revenue increased to €4,726,411 thousand for the year ending December 31, 2023, representing a growth of 12.5% compared to €4,200,674 thousand in 2022[10]. - Adjusted EBIT rose to €1,061,692 thousand, with a margin of 22.5%, up from €845,176 thousand and a margin of 20.1% in the previous year[10]. - Net sales for the year ended December 31, 2023, reached €4,622,882 thousand, representing a 12.1% increase from €4,124,592 thousand in the previous year[17]. - Adjusted EBIT for the same period was €1,061,692 thousand, reflecting a 25.6% increase compared to €845,176 thousand in 2022[17]. - The company reported a net income of €671,026 thousand for the year, a significant increase of 44.2% from €465,193 thousand in 2022[17]. - The total equity attributable to the owners of the group as of December 31, 2023, was €3,853,795 thousand, an increase from €3,482,217 thousand as of December 31, 2022, representing a growth of 10.7%[21]. Regional Performance - Significant double-digit growth was recorded in the following regions at constant exchange rates: Japan +43.8%, Asia Pacific +24%, Europe +14%, and Middle East +10.5%; growth in the Americas was flat at +0.3%[2]. - The Asia-Pacific region contributed €1,446,146,000 in retail sales, a 17.4% increase from €1,231,659,000[24]. - The Americas saw retail sales of €767,365,000, a slight decrease of 1.8% from €781,825,000[24]. Sustainability Initiatives - The group achieved a 58% reduction in Scope 1 and 2 greenhouse gas emissions compared to the 2019 baseline[15]. - The group has signed an ambitious collective procurement agreement for renewable energy, promoting its use in Europe alongside 11 other brands[15]. - The group has invested in acquiring sustainable aviation fuel (SAF) credits to accelerate decarbonization in the aviation sector[15]. Capital Expenditures and Investments - As of December 31, 2023, the net financial position was positive at €196.9 million, reflecting capital cash expenditures of €759.2 million, including strategic real estate investments[2]. - The group completed approximately 130 renovation and reset projects in its retail network, opening 26 new stores and closing 32, resulting in a total of 606 directly operated stores by year-end[13]. - Capital expenditures for the year included significant investments in property, plant, and equipment totaling €681,453,000, with notable investments in strategic locations such as a property on 5th Avenue, New York[37][38]. Shareholder Returns - The company proposed a dividend of €0.137 per share[2]. - The company paid dividends of €281,471 thousand to shareholders in 2023, compared to €179,118 thousand in 2022, marking an increase of 57.3%[20]. - The board proposed a final dividend of €350,558,888 for the fiscal year 2023, equating to €0.137 per share, compared to €281,470,640 or €0.11 per share for the previous year[27]. Organizational Changes - The new Chief Human Resources Officer was appointed in September 2023, contributing to a stronger organizational structure[15]. - The company has undergone organizational changes, including the appointment of a new CEO in January 2023, to enhance brand performance and resource allocation[40]. - The organization has updated its reporting system to provide regular brand performance reports to senior management[40]. Financial Stability - The total assets as of December 31, 2023, amounted to €7,615,051 thousand, an increase from €7,377,578 thousand in the previous year[18]. - Total liabilities decreased to €3,738,242 thousand from €3,876,556 thousand, reflecting improved financial stability[18]. - The net financial position showed a positive net amount of €196.9 million as of December 31, 2023, compared to a negative net amount of €534.9 million in 2022[69]. - The company maintained full compliance with all financial covenants as of December 31, 2023[71]. Tax and Compliance - The group reported a total tax expense of €298,071,000, which is 6.3% of net revenue, compared to €241,820,000 or 5.8% in the prior year[23]. - The company has appealed against tax notifications from the Italian tax authority, which questioned the deductibility of payments made to Prada Asia Pacific Ltd, amounting to approximately €10.8 million for the 2016 fiscal year[57]. - The company has maintained compliance with corporate governance standards, ensuring transparency and protection of shareholder rights[74]. Future Outlook - The company aims to enhance brand appeal and retail performance in 2024, despite geopolitical and macroeconomic uncertainties[73]. - The business plan for Prada extends for five years starting from the 2024 budget, while Miu Miu's projections extend to 2031[44]. - The company plans to invest in retail property renovations and new store openings as part of its future strategy[44].

Financial Performance - Prada Group reported a net revenue of €3,343.6 million for the nine months ended September 30, 2023, representing a 16.8% increase at constant exchange rates compared to the same period in 2022[4]. - Retail sales net revenue increased by 17.1% at constant exchange rates, with a strong performance in the third quarter showing a year-on-year growth of 10.4%[4]. - The wholesale channel sales grew by 5.6% compared to the same period last year, aligning with the company's strategic goals[4]. - Licensing revenue surged by 66.8%, driven by contributions from eyewear and fragrance[4]. Regional Performance - All regions except the Americas recorded double-digit growth, with Japan leading at +46.7%, Asia-Pacific at +21.2%, Europe at +16.8%, and the Middle East at +11.6%[4]. - The Americas region remained stable with a slight decline of -1% in retail sales net revenue for the nine-month period[5]. - Japan's retail sales net revenue increased by 46.7%, benefiting from strong domestic spending and a gradual recovery in tourist traffic[5]. Product Category Performance - The Prada brand's retail sales net revenue increased by 13.1%, while Miu Miu saw a significant increase of 49.5%[4]. - Leather goods recorded a growth of 7.7%, while ready-to-wear saw the fastest growth at +32.0%[3]. - Retail sales net amount for leather goods increased by +7.7% over nine months, with Q3 growth at +0.8%[6]. - Ready-to-wear category showed the fastest growth at +32.0% for the nine-month period, with Q3 growth at +24.9%[6]. - Footwear performance was robust, growing by +16.4% compared to 2022, with Q3 growth at +9.5%[6]. Store Operations - The company operated 602 stores as of September 30, 2023, after opening 20 new stores and closing 30 during the period[4].

Financial Performance - Prada Group reported a revenue increase of 20% year-over-year, reaching €1.5 billion for the first half of 2023[16]. - The company’s net profit rose to €300 million, reflecting a 25% increase compared to the same period last year[16]. - For the six months ended June 30, 2023, Prada Group reported a net revenue of €2,232,379 thousand, representing a 17.4% increase from €1,900,942 thousand in the same period of 2022[18]. - Total net revenue for the first half of 2023 reached €2,232.4 million, a 17.4% increase from €1,900.9 million in the same period of 2022[28]. - The net income attributable to the group for the first half of 2023 was €305,168 thousand, a 62.1% increase from €188,264 thousand in the same period of 2022[18]. - The net income for the period was €306.6 million, accounting for 13.7% of net revenue, compared to €189.4 million (10%) in the same period of 2022[32]. - The company reported a decrease in other current liabilities net amount to €94.4 million, down €198.6 million from December 31, 2022, mainly due to reduced current tax liabilities[36]. - The company reported a total of €1.94 billion in distributable reserves as of June 30, 2023[180]. Sales and Market Growth - User data indicated a 15% growth in active customers, totaling 2 million new customers acquired in the first half of 2023[16]. - Retail sales for the Prada brand increased by 17.7% in the first half of 2023, with a second-quarter growth rate of 14.7%, down from 21.1% in the first quarter[21]. - Miu Miu's retail sales net revenue grew by 50.1% in the first half of 2023, with second-quarter growth accelerating to 57.3%[21]. - Retail sales net revenue for Prada increased by 17.7% in the first half of 2023, with a second-quarter growth rate of +14.7% compared to +21.1% in the first quarter[27]. - Retail sales net amounted to €1,974.7 million, representing a growth of 21.1%, driven by an increase in both average prices and sales volume[25]. - The Asia-Pacific region contributed €715.7 million to retail sales, a growth of 21.2% compared to the previous year[24]. - Retail sales in Europe grew by 24.2%, supported by strong local demand and high levels of tourism[29]. - The Americas experienced a slight decline in retail sales by 1%, although the North American customer base showed resilience throughout the period[29]. Strategic Initiatives - Prada Group anticipates a revenue growth of 10-12% for the full year 2023, driven by strong demand in Asia and North America[16]. - The company is investing €100 million in new product development and technology enhancements to improve customer experience[16]. - Prada Group plans to expand its retail footprint by opening 30 new stores globally by the end of 2023[16]. - The company is exploring strategic partnerships to enhance its supply chain efficiency and reduce costs[16]. - The company plans to recruit 400 talents by the end of the year as part of a major hiring initiative focused on Tuscany, Umbria, and Marche regions[23]. - The company is exploring strategic acquisitions to enhance its product portfolio and market reach[194]. Sustainability and Corporate Responsibility - Sustainability initiatives are a focus, with a commitment to reduce carbon emissions by 30% by 2025[16]. - The company emphasized its commitment to sustainability through initiatives like the SEA BEYOND project and partnerships with UNESCO[23]. - The group has identified significant ESG risks, including climate change and human rights, and is enhancing its control systems to integrate ESG considerations into its business strategy[55]. - The company has implemented an insurance plan to cover business interruptions related to property losses from extreme weather events and network attacks[45]. Financial Position and Investments - The net financial position remains strong, providing ample funding for future strategic initiatives[21]. - Operating cash flow for the first half of 2023 was €181,753 thousand, compared to €158,202 thousand in the same period of 2022[19]. - The total operating expenses amounted to €1,301,976 thousand, a 13.5% increase from €1,146,689 thousand in the previous year[18]. - The company reported a total of €850,000 in retirement, healthcare, and TFR contributions for the board of directors as of June 30, 2023[184]. - The company reported a significant increase in the value of lease liabilities, totaling €207,520,000 as of June 30, 2023[187]. Governance and Compliance - The Audit and Risk Committee held four meetings during the review period with an attendance rate of 91.67% to review significant internal and external audit results and financial matters[69]. - The company established an "Organismo di Vigilanza" to ensure compliance with the Italian Legislative Decree No. 231/2001[75]. - The group faces compliance risks related to legal and regulatory requirements in various jurisdictions, with measures in place to ensure adherence to evolving regulations[53]. - The company actively protects its intellectual property through legal registrations and systematic measures against counterfeiting and infringement[44]. Employee and Operational Metrics - Total employee count increased to 13,855 as of June 30, 2023, compared to 12,985 for the same period in 2022, marking a rise of 6.7%[177]. - The average number of employees in sales increased to 8,283 in the first half of 2023, up from 7,856 in the same period of 2022, a growth of 5.4%[177]. - Total employee compensation for the six months ended June 30, 2023, was €480.67 million, an increase from €432.94 million in the same period of 2022, representing an increase of 11.0%[178]. Risks and Challenges - The company faces various risks, including strategic risks related to brand image and awareness, economic risks, operational risks, and compliance risks[42]. - The performance of the luxury goods market is affected by consumer preferences and overall economic conditions, which may impact the company's financial and operational performance[44]. - Credit risk primarily involves accounts receivable from wholesale channels, with the group managing this risk through credit control systems and monitoring customer creditworthiness[50]. - The group faces health and safety risks related to employee injuries and occupational diseases, with regular safety training and risk assessments implemented to mitigate these risks[50].

Financial Performance - Prada Group reported a net revenue of €2,232.4 million for the six months ended June 30, 2023, representing a 20.5% increase at constant exchange rates compared to the first half of 2022[2]. - Retail sales increased by 21.1% at constant exchange rates compared to the first half of 2022[2]. - Gross margin rose to 80.3% of net revenue, up from 77.7% in the first half of 2022[2]. - EBIT was €491.4 million, equivalent to 22.0% of net revenue, a 61.2% increase compared to €304.8 million (16.0% of net revenue) in the first half of 2022[2]. - The company reported a net income of €306,630 thousand for the first half of 2023, which is a 61.9% increase from €189,417 thousand in the same period of 2022[14]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were €0.119, up from €0.074 in the same period of 2022, reflecting a 60.8% increase[21]. Regional Performance - All regions except the Americas recorded double-digit growth, with Japan up 49.2%, Asia Pacific up 25.3%, Europe up 24.2%, and the Middle East up 13.5%, while the Americas saw a decline of 1%[2]. - Retail sales in the Asia-Pacific region increased by 25.3%, significantly benefiting from the recovery in China[46]. - Retail sales in Europe rose by 24.2%, supported by strong local demand and high levels of tourism[47]. - The Asia-Pacific region contributed €715,724,000 to retail sales, representing a 21.2% increase year-over-year[19]. Operational Highlights - Prada Group operates 603 directly operated stores across 70 countries, with 25 production facilities located in Italy, the UK, France, and Romania[3]. - The group opened 14 new stores and closed 23, resulting in a total of 603 operational stores as of June 30, 2023[46]. - The company completed approximately 70 renovation projects in its retail network during the first half of 2023 to enhance customer experience and productivity[11]. Financial Position - As of June 30, 2023, the net financial position was positive at €282.9 million after paying the 2022 dividend[2]. - The total equity of the group increased to €3,501,416,000 as of June 30, 2023, compared to €3,482,217,000 at the end of 2022[9]. - The company’s total liabilities decreased to €3,701,827 thousand as of June 30, 2023, compared to €3,876,556 thousand at the end of 2022[15]. - The net financial position, including lease liabilities, was €1,906 million as of June 30, 2023, up from €1,573 million at the end of 2022[59]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2023, was €181.8 million, compared to €158.2 million in the same period last year[8]. - Cash flow from operating activities for the six months ended June 30, 2023, was €720,344 thousand, compared to €537,742 thousand in the same period of 2022, indicating a rise of 33.9%[17]. - The company incurred a net cash outflow from investing activities of €148,975 thousand for the six months ended June 30, 2023, compared to €93,067 thousand in the same period of 2022, indicating an increase in investment activity[17]. Sustainability and Corporate Governance - The company is committed to sustainability, with initiatives including a 1% donation from the Prada Re-Nylon collection to educational projects and expanding the SEA BEYOND project[13]. - The board consists of 11 members, including 6 executive directors and 5 independent non-executive directors, ensuring a diverse governance structure[64]. - The Sustainability Committee reported on ESG progress and approved the 2022 sustainability report, holding 2 meetings with a 100% attendance rate[70]. Market Strategy - The company plans to continue expanding its market presence, particularly in the Asia-Pacific region, to capitalize on growth opportunities[19]. - The company aims for sustainable growth that exceeds market levels, focusing on brand investment and retail execution despite challenging comparisons in Q3[60].

Financial Performance - Prada Group reported a net revenue of €1,064.8 million for the three months ended March 31, 2023, representing a 22.2% increase at constant exchange rates compared to the same period in 2022[2]. - Retail sales increased by 23.2% at constant exchange rates, driven by both year-on-year and full-price sales, with retail sales accounting for 89% of total net revenue[5]. - The wholesale channel sales increased by 8.7% at constant exchange rates compared to the same period in 2022[5]. - Licensing revenue surged by 52.3%, significantly contributed by eyewear and fragrance segments[5]. Regional Growth - All regions experienced growth, with Asia-Pacific up 22.4%, Europe up 27.6%, the Americas up 4.9%, Japan up 55.1%, and the Middle East up 15.0%[5]. - The company experienced a strong recovery in the Asia-Pacific region due to the easing of COVID-19 restrictions, leading to a significant acceleration in sales towards the end of the quarter[5]. Product Category Performance - All major product categories, including leather goods, ready-to-wear, and footwear, recorded double-digit growth, with ready-to-wear being the fastest-growing category at +38.3%[6]. - Prada brand retail sales increased by 21.1% at constant exchange rates, while Miu Miu saw a remarkable growth of 41.9%[7]. - The total retail sales for Prada amounted to €813.3 million, while Miu Miu contributed €129.4 million[7]. Strategic Focus - The company continues to focus on new product launches and market expansion strategies to sustain growth momentum[6].

Financial Performance - In 2022, Prada Group's net revenue increased by 21.3% at constant exchange rates, with both Prada and Miu Miu achieving double-digit growth[11]. - Net sales for the twelve months ended December 31, 2022, reached €2,433,852 thousand, a 97.0% of total revenue, compared to €1,805,459 thousand (97.3%) in 2021[13]. - Gross profit margin increased to 67.0% for 2022, up from 61.2% in 2021, despite inflationary pressures on production costs[14]. - EBIT for the period was €968,742 thousand, representing 38.6% of net revenue, compared to €460,423 thousand (24.8%) in the previous year[14]. - Net income for the year was €571,683 thousand, a 22.8% increase from €310,650 thousand (16.7%) in 2021[13]. - Total revenue for the year ended December 31, 2022, was €2,509,323,626, an increase from €1,854,692,127 in 2021, representing a growth of approximately 35.2%[76]. - Gross profit for 2022 reached €1,680,092,518, compared to €1,135,490,036 in 2021, resulting in a gross margin improvement[76]. - The total comprehensive income for 2022 was €595,017 thousand, compared to €298,529 thousand in 2021, indicating a significant increase of 99.2%[77]. Investments and Acquisitions - The company acquired a 43.65% stake in Conceria Superior S.p.A., enhancing its vertical integration in the supply chain and improving quality control[12]. - The company acquired a 43.65% stake in Conceria Superior S.p.A., a company specializing in tanning calf leather, in August 2022[114]. - On September 1, 2022, the company established PRADA Norway As to expand its business in Norway[114]. - The company purchased the entire share capital of Caffè Principe S.r.l. on November 18, 2022, which operates the historic Caffè Principe bar in Marmirolo[114]. - In December 2022, the company acquired all retail operations of four Church's stores from its subsidiary Church & Co Ltd, aiming to streamline the group's structure and enhance profitability[114]. Governance and Management - In January 2023, Andrea Guerra was appointed as CEO, representing a significant governance change aimed at further developing the Prada Group[12]. - The board consists of 11 members, including 6 executive directors and 5 independent non-executive directors, with female representation at approximately 36%[28]. - The board held 5 meetings in 2022, achieving an average attendance rate of 90.9%[29]. - The company established a sustainability committee during the year to enhance its governance structure[29]. - The board's diversity policy emphasizes that diversity should not be limited to gender, reflecting a broader commitment to inclusivity[28]. Financial Position and Liquidity - The total equity of the company as of December 31, 2022, was €2,563,426 thousand, compared to €2,161,802 thousand in 2021[16]. - The debt-to-equity ratio was -15.5% as of December 31, 2022, compared to -6.0% in the previous year[16]. - As of December 31, 2022, the net financial surplus was €390 million, an increase of €248 million compared to the previous reporting date[20]. - Cash flow from operating activities was €726 million, while cash used in investing activities was €54 million[21]. - The total amount of financial receivables and cash and cash equivalents was €926.9 million, up from €822.7 million in the previous year[20]. Risk Management - The company faces financial risks related to currency and interest rate fluctuations due to its international operations[111]. - The company employs hedging contracts to manage risks associated with currency and interest rate fluctuations[111]. - The company has established derivative contracts to hedge against financial risks arising from currency and interest rate fluctuations[127]. - The company has a capital management strategy aimed at ensuring returns for shareholders while complying with loan covenants[137]. Sustainability and Corporate Responsibility - The company launched a new community platform, Prada Crypted, on Discord, allowing users to connect and share ideas across various creative fields[12]. - The Sustainability Committee approved the 2022 sustainability report and supported the industry's roadmap for sustainable operations[54]. - The company adopted a whistleblowing policy in 2022 to provide a reporting channel for employees and contractors regarding potential misconduct[57]. Operational Efficiency - The company continues to focus on customer-centric strategies and retail productivity, optimizing production processes to enhance profitability[11]. - Capital expenditures were primarily related to various technology and digital evolution projects, enhancing supply chain capabilities[18]. - The company aims for robust growth in 2023, focusing on brand enhancement, store network renovation, and industrial and technological infrastructure investments[23]. Employee and Director Compensation - The company’s compensation policy aims to attract, reward, and retain employees, with a focus on maintaining a competitive compensation structure aligned with market standards[48]. - The total remuneration for executive directors includes salary, bonuses, and other benefits, while non-executive directors receive remuneration based on specific circumstances[49]. - The company has established a long-term cash incentive plan for eligible executive directors and senior management, contingent on achieving economic and ESG targets over a three-year period[48]. Financial Reporting and Compliance - The company has prepared a balance sheet that independently classifies current and non-current assets and liabilities[86]. - The company recognizes revenue from the sale of goods when all specified criteria are met, including the transfer of significant risks and rewards to the buyer[106]. - The company has adopted a policy to ensure potential inside information is identified and kept confidential until timely disclosure is made[61].

Company Operations and Structure - Prada Group operates over 612 directly operated stores and employs more than 13,700 staff globally[10]. - The company has a presence in over 70 countries, selling luxury goods through various channels including direct e-commerce and selected department stores[10]. - The company has established 24 production facilities worldwide, enhancing its operational capabilities[10]. - Prada Group operates 612 directly operated stores in prime locations of major international shopping centers, serving as a strategic asset for brand promotion and sales monitoring[47]. - As of December 31, 2022, Prada Group employed 13,768 individuals from 113 countries, with women representing 63% of the total workforce[55]. - The company has 24 production facilities, with 21 located in Italy, ensuring high-quality craftsmanship and flexibility in production processes[46]. - Prada Group's structure includes various subsidiaries across multiple regions, including retail operations in the Middle East, Europe, and Asia[77]. - Several subsidiaries, including PRM Services S. de R.L. de C.V. and Prada Maroc Sarlau, are currently undergoing liquidation processes[78]. - The company maintains a strong retail presence in key markets such as Dubai, London, and Tokyo, with 100% ownership in many subsidiaries[77]. Sustainability and Ethical Practices - Prada Group's mission emphasizes sustainable development as a core part of its business strategy[13]. - The group announced a zero-fur policy for all brands in 2019 and joined the Fashion Pact, promoting sustainability in the fashion industry[20]. - The establishment of a new sustainability committee in 2022 led to the creation of a new ethical code and human rights policy applicable across the group[20]. - Prada Group's commitment to sustainability includes the establishment of a sustainability committee in early 2022 to oversee environmental and social initiatives[54]. - Prada has transitioned to using Re-Nylon, a sustainable material, and has committed to a fur-free policy since the Spring/Summer 2020 collection[59]. - The Group became a founding member of the Re.Crea Consortium in 2022, aimed at managing waste textiles and promoting innovative recycling solutions[59]. - Prada's "Sea Beyond" educational project, launched in 2019, raises awareness about sustainable development and marine protection, with funding linked to sales from the Re-Nylon collection[59]. - The group has identified significant ESG risks including climate change, human rights, and occupational health and safety, and plans to enhance control systems to integrate ESG considerations into business strategies[133]. - The board approved a new ethical code in July 2022, which includes commitments to environmental protection as a key element[172]. - The company focuses on long-term relationships with suppliers, ensuring adherence to high ethical standards and quality requirements[174]. Financial Performance - Prada Group reported a net income of €469,155 thousand for the year ending December 31, 2022, representing an 11.2% margin on net revenues, compared to €295,103 thousand and an 8.8% margin in the previous year[138]. - The company reported a total equity of €255,882,400, equivalent to 2,558,824,000 shares at €0.10 per share[81]. - The company achieved a net income of €465,193, a 58.1% increase from €294,254 in the previous year[85]. - The gross profit margin improved to 78.8%, compared to 75.7% in the previous year, reflecting a strong operational performance[85]. - Adjusted EBIT for the year was €845,176, which is 20.1% of net revenue, up from 14.8% in the previous year[86]. - Prada Group reported a net revenue of €4,200.7 million for the fiscal year 2022, representing a 24.8% increase compared to the previous year, with a fixed exchange rate growth of 21.3%[91]. - Retail sales net amount reached €3,736.97 million, reflecting a 27.5% increase at current exchange rates and a 23.8% increase at fixed exchange rates[92]. - The company closed 40 stores, including 24 Church's stores due to restructuring, resulting in a total of 612 stores as of December 31, 2022[93]. - The total capital expenditure for the year was €276.1 million, with significant investments in store redesigns and technology projects[107]. - The net financial position improved, with a net financial surplus of €534.9 million as of December 31, 2022, compared to €237.7 million in 2021[109]. Innovation and Product Development - Prada Group's innovative approach has led to the introduction of new business models and direct control over production processes[15]. - The company aims to enhance brand value and recognition over time, focusing on creativity and transformation[10]. - Prada launched its first fragrance, Paradoxe, in collaboration with L'Oréal in 2022, marking a significant expansion in luxury beauty products[20]. - The group introduced the Eternal Gold jewelry collection, made from 100% certified recycled gold, furthering its commitment to sustainability[20]. - The company has invested significantly in training and passing on craftsmanship skills to younger generations through the Prada Academy[46]. - The company is committed to innovation in product development, particularly in eyewear and fragrance licensing[162]. Marketing and Brand Strategy - Prada Group's marketing strategies leverage fashion shows and advertising campaigns to enhance brand visibility and engage with international customers[53]. - The company has streamlined its wholesale channels over the past few years, focusing on selective partnerships with department stores and multi-brand retailers[53]. - Prada Group's e-commerce platform enhances customer experience and complements physical stores, reflecting a multi-channel strategy[47]. - The company aims to enhance stakeholder value by combining economic profitability with employee and customer satisfaction, while respecting ethical and environmental values[172]. Leadership and Governance - The board of directors includes key figures such as Andrea Guerra (CEO) and Patrizio Bertelli (Executive Director), ensuring experienced leadership[81]. - The company appointed Andrea Guerra as CEO in January 2023, marking a significant governance change aimed at further developing the Prada Group[90]. - The company emphasizes the importance of sustainability and corporate social responsibility in its strategic initiatives, as highlighted by the expertise of its board members[155]. - The management team has extensive experience in the fashion and luxury goods industry, with key personnel holding significant positions in various companies prior to joining Prada[165][166]. Community Engagement and Social Responsibility - The company made charitable contributions totaling €3,959,250 in 2022, an increase from €2,891,906 in 2021[176]. - Prada Group's flagship store in Shanghai serves as a cultural activity center, reflecting the company's commitment to historical preservation and cultural engagement[64]. - The Prada Foundation hosted ten research exhibitions at its Venice site since 2011, focusing on contemporary art and cultural discussions[65]. - The group has established an industrial compliance committee since 2010 to oversee compliance with international and local legal standards[171].