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].

Although Fifth Avenue in Midtown reigns as the world’s priciest-to-rent shopping corridor with sidewalk-level stores charging $2,000 per square foot, according to Cushman & Wakefield, there soon might not be anywhere left to rent.That’s because retailers are rapidly buying the buildings that are home to their glamorous stores. It happened again this week with news that Prada is grabbing a second building on the “world’s greatest shopping street” — 720 Fifth Ave. at East 56th Street, next door to 724 Fifth, ...

Prada S.p.A. (OTCPK:PRDSY) Q3 2023 Earnings Conference Call October 31, 2023 6:30 PM ET Company Participants Andrea Bonini - CFO Andrea Guerra - Group CEO Conference Call Participants Susy Tibaldi - UBS Erwan Rambourg - HSBC Edouard Aubin - Morgan Stanley Thomas Chauvet - Citi Research Luca Solca - Bernstein Melania Grippo - BNP Paribas Louise Singlehurst - Goldman Sachs Thierry Cota - Societe Generale Liwei Hou - CICC Chris Gao - CLSA Andrea Bonini Good afternoon, everyone, and thank you for joining the Pr ...

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 - The Group's net revenues reached €2.232 billion, a 20% increase at constant exchange rates compared to H1-22[8, 20] - Retail sales amounted to €2.0 billion, reflecting a 21% growth at constant exchange rates[8] - The EBIT margin improved to 22.0%, translating to €491 million[8, 20] - Net income increased by 62% to €305 million[35] Brand Performance - Prada retail sales grew by 18% at constant exchange rates, reaching €1.668 billion[26] - Miu Miu retail sales experienced a significant acceleration, growing by 50% at constant exchange rates to €285 million[26] Channel Performance - Retail channel revenue was €1.975 billion, up 21% at constant exchange rates[24] - Wholesale channel revenue increased by 9% at constant exchange rates, reaching €210 million[24] - Royalties revenue showed strong growth of 66% at constant exchange rates, reaching €47 million[24] Geographical Performance - Asia Pacific retail sales increased by 25% at constant exchange rates, reaching €716 million[29] - Europe retail sales grew by 24% at constant exchange rates, reaching €582 million[29] - Americas retail sales decreased by 1% at constant exchange rates, totaling €361 million[29] Capital Expenditure - The company accelerated its capital expenditure plan, investing €151 million[8]

Prada S.p.A. (OTCPK:PRDSY) Q2 2023 Earnings Conference Call July 27, 2023 8:15 AM ET Company Participants Andrea Bonini - CFO Patrizio Bertelli - Chairman of the Board and Executive Director Andrea Guerra - Group CEO Lorenzo Bertelli - Marketing Director and Head of CSR. Conference Call Participants Susy Tibaldi - UBS Thomas Chauvet - Citi Research Edouard Aubin - Morgan Stanley Aurelie Husson-Dumoutier - HSBC Luca Solca - Bernstein Antoine Belge - BNP Paribas Louise Singlehurst - Goldman Sachs Liwei Hou - ...

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].