Due to a 60 per cent increase in retail sales at its smaller brand Miu Miu, the Italian luxury firm Prada’s net revenues increased 12.5 per cent at constant exchange rates in the first quarter, which was marginally more than analysts had predicted.
The group reported that Prada’s net revenues had increased to US $ 1.52 billion, but a Visible Alpha consensus predicted that they would rise to US $ 1.51 billion. Prada, the group’s flagship and name brand, saw flat first-quarter retail sales.
Despite greater volatility over the period, retail sales—which make up around 90 per cent of the group’s total revenues—rose in all regions, including the Americas, thanks to local demand.
During a conference call, Prada’s CEO informed analysts that although sales in North America grew in the first quarter, the recent uncertainties and the declining value of the dollar might be more noticeable in the future.
In light of the euro’s strengthening and possible US tariffs, the group will determine the magnitude of its price hikes in the upcoming months, he continued.
The company has been outperforming the majority of its competitors, like LVMH and Kering, and this month it signed a US $ 1.38 billion deal to acquire Versace, a lesser rival, from Capri Holdings. The first three months of the year saw a decline in sales for the French luxury firms Kering and LVMH.
