Core Insights - Prada reported an 8% organic revenue growth in 2025, driven primarily by a 35% sales increase in its Miu Miu label, despite a decline in retail sales for the flagship Prada brand [1][2][3] - The acquisition of Versace for 1.3 billion euros ($1.51 billion) has negatively impacted the group's profit margins, with an adjusted EBIT margin of 23.2%, down from 23.6% the previous year [1][2][3] - Prada plans to integrate and relaunch Versace, which is expected to continue reporting operating losses in 2026, while also streamlining its store network [1][2][3] Financial Performance - Group net revenues reached 5.72 billion euros in 2025, with retail sales for the Prada brand declining by 1% [1][2] - Miu Miu's sales growth of 35% follows a nearly doubling of sales in 2024, indicating strong momentum for the brand [1][2][3] - The Asia Pacific and Americas regions exhibited the strongest sales growth, while Europe experienced more modest growth due to softer tourism flows [1][2] Strategic Focus - Prada's CEO, Andrea Guerra, emphasized the importance of the Versace acquisition as a strategic shift after years of avoiding acquisitions, with expectations for progressive improvement in profitability from 2027 [1][2][3] - The new creative director for Versace, Pieter Mulier, and the appointment of Emmanuel Gintzburger as CEO are part of the brand's leadership transition aimed at revitalizing its market presence [1][2][3] - Prada intends to reduce the off-price channel for Versace and expects some topline contraction during the initial repositioning phase [1][2][3]

Overall Performance - Prada Group's retail sales experienced a solid start to the year with a +13% increase [11] - Total revenue reached €1341 million, a +13% increase compared to Q1-24 [20] - Retail channel contributed €1216 million, showing a +13% growth [20] - Wholesale revenue amounted to €96 million, a +7% increase [20] - Royalties generated €29 million, a +15% increase [20] Brand Performance - Miu Miu demonstrated remarkable growth at +60% [12] - Miu Miu retail sales reached €377 million [23] - Prada retail sales remained stable at €827 million [23] - Church's retail sales increased by +2% to €7 million [23] Regional Performance - Asia Pacific retail sales grew by +10% to €438 million [27] - Europe retail sales increased by +14% to €334 million [27] - Americas retail sales grew by +10% to €201 million [27] - Japan retail sales increased by +18% to €172 million [27] - Middle East retail sales grew by +26% to €70 million [27]