Financial Data and Key Metrics Changes - Net revenues reached €4.7 billion, up 17% at constant exchange rates compared to fiscal year 2022 [10][50] - EBIT margin improved to 22.5% of revenues, up from 20.1% in fiscal year 2022 [26][51] - Net income increased by 44% to €671 million [27][28] - CapEx for fiscal year 2023 was €753 million, including a strategic real estate acquisition [27][28] Business Line Data and Key Metrics Changes - Retail sales increased by 17% year-on-year, driven by full price like-for-like sales [20][21] - Miu Miu reported outstanding performance with a 58% year-on-year growth, accelerating to 82% in Q4 [53][54] - Ready-to-wear was the fastest-growing category at 31%, followed by footwear at 18% and leather goods at 8% [54] Market Data and Key Metrics Changes - Asia-Pacific saw strong growth of 24% year-on-year, while Europe grew by 14% [23][24] - The Americas ended the year flat, with a slight improvement in Q4 [10][56] - Japan was the best-performing region, up 44% for the year [56] Company Strategy and Development Direction - The company aims to continue enhancing brand desirability through innovative products and marketing strategies [4][6] - Focus on retail excellence and selective wholesale approach to drive profitability [15][52] - Continued investment in sustainability initiatives, including a 58% reduction in Scope 1 and 2 greenhouse gas emissions [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining above-market growth rates despite potential challenges in 2024 [30][63] - The company anticipates a more linear growth path in 2024, with ongoing investments in innovation and product development [30][32] - Management noted the importance of adapting to changing consumer behaviors and market dynamics [16][30] Other Important Information - The company completed around 130 renovation and relocation projects, accounting for 80% of total retail CapEx [59] - The group retains a solid balance sheet with a net cash position of €197 million at the end of 2023 [28] Q&A Session All Questions and Answers Question: Insights on the beginning of the year and Chinese spending trends - Management noted that Chinese spending is recovering, with individual travelers becoming more prominent compared to group travel [66][72] Question: Contribution of price to sales and outlet strategy - Management confirmed that the contribution from factory outlets is now less than 10% and emphasized the strategic decision to close these outlets [71][72] Question: Performance of Miu Miu and its growth management - Management highlighted Miu Miu's growth as a result of a long-term strategy and emphasized the importance of maintaining a balanced approach to avoid overheating the brand [85][122] Question: Outlook for the US market and store openings - Management expressed optimism for the US market, indicating it could be a leading growth area in the coming years, with plans for strategic store openings [128][133] Question: Leather goods performance and consumer response - Management acknowledged strong consumer response to leather goods initiatives and emphasized the importance of balancing new launches with iconic products [140][147]
PRADA(PRDSY) - 2023 Q4 - Earnings Call Transcript