Prada Group CEO Andrea Guerra said amid the US tariff debacle that it’s not tariffs that worry him, but cautioned that the larger uncertainty unleashed by continued tariff battles is much more detrimental to business confidence and long-term planning. He added that they’re clearly entering a more difficult period, but the fundamentals for success are still within their reach.
Guerra’s remarks at the Family Business Forum in Arezzo, Italy, come as the luxury sector grapples with a confluence of challenges. These include a cooling Chinese economy, ongoing geopolitical tensions, shifting consumer behaviours, and growing generational divides. Global sales expansion is decelerating, particularly in North America and certain parts of Asia, and the post-pandemic boom in luxury spending is also diminishing. For several brands, trade policy uncertainty, particularly under a second Trump term, provides still another complication.
Guerra also addressed a wider cultural change within the luxury category, and among younger generations in general. He noted that they are confronting a new generation that does not automatically accept what comes from America. This generation is seeking authenticity, not rhetoric. They are looking for brands and leaders to back up words with action, pointing to his own children as representative of this changing mentality.
Guerra announced that Prada will begin reviving iconic Italian fashion house Versace within the next four to five months. Once a key player in Italian luxury, Versace has lost some of its lustre, and Prada now aims to see how far it can be revitalised over the next one to five years.
Admitting the long-term nature of such a revival, Guerra emphasised that a conscious and measured strategy is needed. He explained that in luxury, patience isn’t optional—it’s essential, and calm and clarity are key when embarking on a new journey.
