2026-04-01 09:03Financial Performance - Prada Group achieved a net revenue of €5.7 billion, reflecting an 8% increase year-over-year[11] - The adjusted EBIT margin increased to 23.2%, with a 3% growth at current exchange rates[13] - Prada Group reported a total equity of €255,882,400, equivalent to 2,558,824,000 shares at €0.10 per share[146] - The Group achieved a net profit of €854,922 thousand, which is a 1.4% increase compared to €843,400 thousand in 2024[150] - The cost of goods sold was €1,125,444 thousand, resulting in a gross profit margin of 80.3%, up from 79.8% in the previous year[150] - The Group's operating cash flow was reported at €1,201,882 thousand, slightly down from €1,212,784 thousand in 2024[152] - The net financial position showed a deficit of €465,810 thousand, impacted by capital expenditures of €595 million and financing for the Versace acquisition[152] - The recurring operating income (adjusted EBIT) was €1,323.6 million, representing 23.2% of net revenue, slightly down from 23.6% in 2024[174] - Net profit for the year was €854.9 million, accounting for 15.0% of net revenue, compared to €843.4 million (15.5%) in 2024[176] Retail and Market Presence - Retail sales remain the primary growth engine, driven by full-price sales[11] - The company operates 843 directly operated stores globally, with a significant presence in Europe, Asia-Pacific, and the Americas[16] - The company operates multiple subsidiaries globally, with 100% ownership in several key markets, ensuring strong control over its operations[109][110] - The company has established a significant retail footprint in Asia, with operations in countries such as Japan, South Korea, and Singapore[130] - The number of stores increased to 843, with 31 new openings and 17 closures, including 220 stores from the integration of Versace, primarily in the Asia-Pacific region[165] - Retail sales for the Prada brand experienced a decline of 1% over the 12-month period, while Miu Miu saw a significant increase of 35% in retail sales[153] Strategic Acquisitions and Investments - The acquisition of Versace, completed in early December, marks a historic milestone for the group and opens a new chapter[11] - Prada Group announced the successful acquisition of Versace from Capri Holdings, marking a significant step in its development journey[69] - The group made a minority equity investment in Rino Mastrotto, a global provider of luxury materials, to strengthen industrial capabilities[156] - The group established a €1,500 million syndicated financing agreement for the acquisition of Versace, including a €1,000 million term loan and a €500 million bridge loan[183] Sustainability and Corporate Responsibility - The group emphasizes sustainable development as a fundamental responsibility and a significant opportunity[12] - Prada Group's commitment to sustainability is reflected in its zero-fur policy and the launch of products made from regenerated nylon[53] - The group launched its first jewelry collection made from 100% recycled gold, named Eternal Gold, in 2022[58] - Prada Group's sustainable development strategy is built on three pillars: Earth, People, and Culture, with a focus on reducing environmental impact and enhancing stakeholder engagement[98] - The company has established a sustainability committee to assist the board in evaluating sustainability issues and making informed decisions[98] - The group continues to execute its sustainability strategy, making progress in environmental initiatives and achieving gender equality certification[158] Brand and Product Development - The company has invested heavily in capital expenditures to enhance retail, digital, and industrial capabilities[11] - Prada Group signed a global licensing agreement with L'Oréal for high-end cosmetics in 2023, enhancing its presence in the beauty sector[64] - The company is set to return to the beauty sector with a new line of cosmetics and skincare products in 2023[62] - The company emphasizes the use of exclusive custom fabrics and leathers, adhering to strict technical and style specifications to ensure product quality[91] - The group is focused on digital development, yielding results from years of investment in information systems[157] Employee and Cultural Initiatives - Prada Group employs approximately 18,000 staff across 25 owned factories, with 23 located in Italy[19] - Prada Group achieved UNI/PdR 125:2022 gender equality certification, demonstrating its commitment to creating an inclusive workplace[69] - The group celebrated the 25th anniversary of the Prada Academy, a platform for skill development and knowledge transfer to younger generations[69] - The company is committed to enhancing diversity, equity, and inclusion, focusing on employee well-being and engagement[100] - The group established a global talent culture forum to improve employee welfare and work-life balance[100] Risk Management and Operational Stability - The group is actively managing risks related to brand protection and talent retention to ensure operational stability and financial performance[189][190] - The business may face interruptions due to geopolitical tensions, public health events, and quality control failures, potentially leading to economic and reputational losses[199] - The group has balanced store distribution to mitigate risks, with operations primarily in Italy across multiple factories and ongoing online sales initiatives[200]