Sales of the Prada Miu Miu collection increased

Miu Miu’s sister brand to Prada posted a historic first half—retail sales similarly jumped 50 percent—as renewed brand buzz translated into higher revenue. The Milan fashion group said sales at its flagship brand, Prada, grew 18 percent.

On a call with analysts, the revamped Prada management team cited cultural significance and illustrated Miu Miu’s position as a key growth driver, as well as the brand’s exposure to Asian markets where sales have rebounded from coronavirus lockdowns last year).

In October 2021, the company unveiled a more visible, social media-friendly brand platform for Miu Miu, emphasizing rebellious twists on the classic team dress, pushing interest in the brand to new heights. Miu Miu has since continued to develop these traits, popularizing ladylike formal wear, ballet flats, fancy tights, and vintage push-up buttons. The revamped handbag program recalled the it-bag aesthetic of the early 2000s but with a timeless twist that helped keep the items from feeling overly modern.

The Prada Group’s revenue of €2.2 billion in the first half rose 20 percent year-on-year, just short of analyst estimates. Sales rose sharply among Asian customers, CEO Andrea Guerra said, while Europeans “are back to normal, but remain very solid.”

Like many competitors, the Prada Group is facing slowing demand in its key US market, where retail sales fell 1% in the first half. However, the group said its business with US customers continues to grow overall, with low-digit sales increasing once sales to US tourists in Europe are taken into account.

Last week, falling sales at Cartier owner Richemont sent its shares down as much as 10 percent in a single day. Earlier this week, sector leader LVMH reported similar weakness in the US, citing lower demand from ambitious clients.

The Prada Group’s strong results — roughly in line with LVMH’s 20 percent growth in the second quarter — suggest the company has the momentum to navigate an increasingly uncertain fashion market without the backing of a major conglomerate.

The company recently reshuffled its executive ranks in an effort to strengthen governance and smooth the transition to its next generation of leaders: while controlling shareholder Miuccia Prada remained co-creative director alongside Raf Simons, it relinquished its co-CEO position upon the arrival of the outgoing CEO. President of Luxottica Guerra earlier this year. Her husband, Patrizio Bertelli, also stepped down as CEO, moving to CEO. In addition, the group has appointed a new chief executive officer at Prada’s brand level, Gianfranco D’Attis, formerly of Dior.

Editor’s note: This story was updated on July 27 to show that group revenue was €2.2 billion in the first half.