2026-04-01 09:06Financial Performance - The company's net revenue for the year ending December 31, 2025, was €3,043 million, an increase of 2.2% from €2,977 million in the previous year[19]. - The gross profit margin increased to 67.1%, compared to 68.2% in the previous year, with a gross profit of €2,041 million[19][20]. - EBIT for the year was €1,052 million, representing a margin of 34.6%, up from 33.8% the previous year[19][20]. - Operating expenses decreased as a percentage of net revenue, contributing to the improved EBIT margin[20]. - The financial loss net amount was €748.5 million, a decrease of €1,158 million compared to the previous reporting date[31]. - Financial liabilities increased by €1,419 million due to financing arrangements for the acquisition of the Versace Group[32]. - Cash and cash equivalents amounted to €833.9 million, up from €601.7 million in the previous year[30]. - Net cash flow from operating activities was €888 million, while net cash used in investing activities was €1.521 billion[33]. - Total revenue for the year ended December 31, 2025, reached €3,042,769,056, an increase from €2,976,971,031 in 2024, representing a growth of approximately 2.2%[149]. - Net profit for the year ended December 31, 2025, was €795,593,167, down from €849,706,977 in 2024, showing a decrease of approximately 6.4%[149]. - Total assets increased to €7,062,447,190 in 2025 from €5,288,542,681 in 2024, marking a growth of about 33.6%[148]. - Total liabilities increased to €3,403,395,599 in 2025 from €2,023,476,774 in 2024, indicating a rise of about 68%[148]. Strategic Initiatives - The group reported a solid performance in a challenging environment, marking a significant milestone with the acquisition of Versace, which enhances the product portfolio with complementary brands[12]. - Prada brand showcased its innovative strength through trend-setting fashion shows and successful product launches, contributing to balanced brand performance[12]. - Miu Miu's vibrant and eclectic creative expression continues to resonate with diverse female imagery, attracting significant audience engagement through advertising and fashion shows[12]. - The company focused on enhancing retail relationships by investing in store layouts and controlling the opening and expansion of new stores for both Prada and Miu Miu brands[12]. - The company is committed to strengthening industrial capabilities by expanding production facilities and enhancing control over strategic production processes[12]. - A minority stake investment in Rino Mastrotto, a global provider of materials and custom services for the luxury goods industry, reflects the company's dedication to long-term partnerships[14]. - The company is advancing its digital development and beginning to reap the benefits of years of investment in this area[15]. - The company plans to enhance brand appeal and optimize its retail and wholesale networks, including adjustments to discount channels and pricing strategies[18]. - The company continues to invest in technology and digitalization to enhance retail and production capabilities[27]. Sustainability and Social Responsibility - The group is executing its sustainability strategy across all pillars, including environmental initiatives and responsible management of resources[16]. - The company achieved significant milestones in promoting a fair and inclusive work environment, including gender equality certification and the establishment of a global talent culture forum[16]. - The 25th anniversary of the Prada Group Academy underscores the company's commitment to preserving craftsmanship and ensuring generational continuity[16]. - The company has partnered with UNESCO on the SEA BEYOND project to strengthen its commitment to marine education[17]. - The group has established a sustainability strategy focusing on greenhouse gas reduction and the use of low-impact materials in products and packaging[48]. - The company is focusing on evolving strategies to meet stakeholder expectations and adapt to market changes, with a particular emphasis on reducing carbon emissions and transitioning to environmentally friendly materials[50]. - The company is committed to sustainability through initiatives like Sea Beyond and Forestami Academy, promoting a culture of sustainability internally and externally[50]. Governance and Compliance - The board consists of 11 members, with approximately 45% being female directors, reflecting a commitment to diversity[83]. - The independent auditor for the financial statements is KPMG S.p.A., appointed for a three-year term until December 31, 2027[73]. - The company has adopted governance practices that align with applicable laws and regulations, ensuring transparency and shareholder rights[80]. - The board held a total of seven meetings in the fiscal year 2025 to discuss overall corporate strategy and evaluate financial performance, achieving an average attendance rate of 92.20%[86]. - The board is responsible for continuous assessment of internal controls and risk management effectiveness[89]. - The company emphasizes compliance with legal regulations and internal controls as part of its operational strategy[92]. - The company has implemented various controls to enhance cash management efficiency, addressing potential risks related to cash shortages in stores[52]. - The company has adopted a new shareholder communication policy on July 30, 2024, ensuring compliance with current listing rules[143]. Risk Management - The group faces risks related to losing strategic retail locations due to unfavorable lease negotiations, which could negatively impact financial performance[38]. - The group actively monitors the market to secure suitable professional skills and crafts, while establishing retention measures based on performance management processes and incentive plans[37]. - The group manages supply chain risks by contracting with multiple suppliers to avoid concentration and ensuring compliance with quality and ethical standards[43]. - Credit risk is primarily attributed to trade receivables from wholesale channels and business partners, with the company managing this risk through customer credit monitoring and diversification of financial counterparties[51]. - The company faces foreign exchange risk due to its international operations, which may adversely affect revenues and expenses; it uses derivative contracts to hedge this risk[54]. - Interest rate risk is managed through the use of derivatives to convert floating-rate debt into fixed-rate debt[54]. Human Resources and Talent Management - The group emphasizes the importance of talent management and retention, implementing training programs through the Prada Academy to cultivate necessary professional skills[37]. - The group has a balanced distribution of stores to mitigate operational risks, with production primarily located in Italy across multiple factories[46]. - The company's compensation policy aims to attract, reward, and retain employees, considered key to business success, with a focus on market-competitive compensation[113]. - The compensation structure includes fixed, variable, direct, and deferred components, linked to the group's annual performance and specific departmental goals[114]. Financial Reporting and Accounting - The company is set to adopt new international financial reporting standards effective January 1, 2025, which have been approved by the EU[164]. - The company has not yet completed the assessment of the impact of new standards and amendments that are not applicable as of December 31, 2025[167]. - Revenue from the sale of goods is recognized when all criteria are met, with provisions for returns based on historical experience and other relevant data[199]. - Current and deferred tax expenses are recognized in profit or loss, excluding those related to business combinations or directly recognized in equity[200].