Core Insights - Prada Group is leveraging its manufacturing capabilities to support Versace, enhancing quality and operational agility [1][2] - Versace aims to reposition itself towards quality and full-price sales while integrating processes across functions [2][3] - The brand is expected to experience a transition year in 2026 due to changes in creative leadership and operational losses [6][7] Manufacturing and Operations - Prada Group's manufacturing platform includes 25 facilities, with two located outside Italy, which is a source of pride for the chairman [1] - The group has rationalized its suppliers and is focusing on building a more internal manufacturing infrastructure, having set up three factories since COVID [6] - Versace's sales last year were 684 million euros, with expectations of operational losses continuing into 2026 [6][7] Financial Performance - Prada Group reported a 5% increase in revenues for 2025, reaching 5.72 billion euros, marking 20 consecutive quarters of growth [8] - Net profit rose by 2% to 852 million euros compared to 839 million euros in 2024 [8] - The group's organic sales growth, excluding Versace, was 8% at constant currency [8] Brand Strategy and Leadership - Pieter Mulier will join Versace as chief creative officer, with plans to revive the Atelier couture line [4] - The group is optimistic about Versace's potential for growth, citing brand awareness and cultural relevance as key strengths [3] - The transition in leadership is expected to be a gradual process, with Bertelli acknowledging it won't be an overnight task [3] Market Performance - Retail sales in the Asia-Pacific region grew by 10% at constant currency, while the Americas saw a 15% organic growth [15][18] - European retail sales increased by 2%, reaching 1.56 billion euros, with a 4% organic growth [17] - The Middle East region reported an 11% increase in sales, with organic growth at 15% [18]