Core Viewpoint - Prada Group reported a 5.3% increase in net revenue for 2025, reaching €5.72 billion (approximately ¥45.8 billion), with a net profit growth of 2% to €852 million (approximately ¥6.8 billion), indicating a significant slowdown compared to the previous year's growth rates of 17% in revenue and 25% in net profit [2][4]. Financial Performance - The group's gross margin improved slightly to 80.3% in 2025 from 79.8% in 2024 [2]. - Retail sales for the Prada brand remained stable at €3.4 billion, while Miu Miu saw a 35% increase in retail sales to €1.595 billion [6][12]. - The overall performance of the luxury goods sector showed that only Brunello Cucinelli achieved double-digit growth alongside Prada, with revenue growth of 10.1% and net profit growth of 10.5% [4]. Market Performance - The Asia-Pacific region, particularly China, was the largest revenue source for Prada, with a 10.9% increase to €1.7 billion, accounting for 33% of total retail sales [13]. - The Americas experienced the highest growth rate at 17.7%, reaching €932 million, while Europe and Japan also saw positive growth [13]. Strategic Developments - Prada Group's acquisition of Versace for €1.25 billion is seen as a strategic move to cultivate a second tier of luxury brands, with plans to relaunch the Atelier Versace haute couture line and phase out the lower-priced Versace Jeans Couture line [9][12]. - The group aims to reduce the proportion of Versace sales through outlet stores, which previously accounted for over 30% of sales, and to enhance full-price sales [12]. Operational Changes - The group opened 31 new stores and closed 17, resulting in a total of 843 directly operated stores after integrating Versace's 220 stores [16]. - Prada Group employs approximately 18,000 staff across 25 owned factories, with 23 located in Italy [16].

Group 1 - The core viewpoint of the article is that Prada Group reported a net revenue of €5.72 billion for the 12 months ending December 31, 2025, reflecting a 9.1% increase at constant exchange rates and a 7.8% organic growth [1] - Retail sales net revenue increased by 9.3% at constant exchange rates, with an organic growth of 8.2% [1] - The company has recorded growth for five consecutive years [2] Group 2 - By brand, Miu Miu showed the strongest performance with a retail sales net revenue increase of 34.8%, with growth recorded in all regions [2] - Prada brand's retail sales net revenue remained roughly flat compared to the previous year, while Church's retail sales net revenue increased by 7.1% [2] - By region, retail sales net revenue increased by 17.7% in the Americas, 15.5% in the Middle East, 10.9% in the Asia-Pacific, 4.7% in Europe, and 3.1% in Japan [2] Group 3 - The gross margin for 2025 is projected to be 80.3%, an increase of 0.5 percentage points compared to 2024 [2] - The net profit for the year is €850 million, representing a 1.6% increase from 2024 and accounting for 15.0% of net revenue [2] - The board has proposed a dividend payment of €0.166 per share [3]

Core Insights - The Prada Group has officially acquired the Versace brand, with the acquisition closing on December 2, coinciding with Gianni Versace's birthday [1] - The acquisition received all necessary regulatory approvals, including the European Commission's clearance in September [1] - The enterprise value of the acquisition from Capri Holdings was reported at 1.25 billion euros [3] Company Leadership - Lorenzo Bertelli, head of CSR at Prada Group and son of Patrizio Bertelli and Miuccia Prada, is expected to become the executive chairman of Versace [2] - Prada Group also owns other brands including Miu Miu, Car Shoe, and Church's [2] Brand Management - Donatella Versace stepped down from her role as creative director after nearly 30 years, with Dario Vitale succeeding her and debuting a new collection in September [4] - Vitale's collection received positive reviews for its vibrant designs that honor Gianni Versace's legacy [4] Strategic Rationale - Lorenzo Bertelli emphasized that Versace's distinct aesthetic from Prada's existing brands is a strength, allowing the group to reach new audiences [5] - The acquisition is seen as a significant opportunity to express a different brand message and tap into Versace's potential [5] Financial Outlook - Prada Group reported an 8% revenue increase to 2.74 billion euros in the first half of the year [6] - Versace is projected to generate revenues of $810 million in 2024, with an expected high-single-digit negative operating profit margin [6] - Versace operates through a global network of 227 stores, but its business was categorized as a discontinued operation in Capri Holdings' first-quarter sales [6]