Prada Sales Climb 9% in 2025 as Versace Era Begins

Prada Group’s revenue rose 9 percent last year at constant exchange rates, lifted by the continued strength of Miu Miu that helped push profit at the Italian luxury house slightly higher.

Revenue climbed to €5.72 billion ($6.64 billion), the company reported on Thursday. Net income advanced 1.5 percent to €852 million while the profit margin slipped by half a percentage point.

The results are the first for Prada since closing in early December its €1.25 billion acquisition of Versace, the group’s biggest ever in its more than 110-year history. The company expects consolidating Versace’s results will pull down the group’s operating profit margin this year. Improvement should begin in 2027 as efficiencies are harnessed, chief executive Andrea Guerra said on a conference call with analysts.

While Prada has weathered luxury’s long-running downturn better than most in the industry, the results from the Prada and Miu Miu brands in the coming quarters will become less central as investors and analysts begin to parse the numbers that begin to emerge from Versace. The troubled brand languished for seven years under previous owner Capri Holdings and needs a revamp.

Guerra on Thursday again warned that turning around Versace will take “patience.” The first collection from the brand’s new designer, Pieter Mulier, will be in 2027.

The acquisition marks a turning point for Prada, which has spent the past four years riding the explosive growth of Miu Miu while the core Prada brand has grown more stable.

Prada, which trades on the Hong Kong stock exchange, said the October to December period marked the 20^th consecutive quarter of revenue growth.

The Prada group generated almost 90 percent of sales last year through its retail channels, the same as in 2024. Like most of its peers, Prada has worked to increase retail sales while pulling back from wholesale channels, which provide slimmer profit margins and less control over how products are presented and priced.

In a positive sign for the group, retail sales at the Prada brand rose 0.4 percent in the fourth quarter, continuing an improving trend after a 1.9 percent drop in the first six months of last year and a 0.8 percent fall in the third quarter. For the full year, Prada retail sales declined 1 percent, following a 4 percent advance in 2024.

Miu Miu’s retail sales climbed 20 percent in the fourth quarter, a step back from the torrid pace of previous quarters but still well ahead of most industry peers. The brand’s growth streak now stretches to four years and follows an 84 percent surge in the fourth quarter of 2024. Retail sales rose 35 percent over all of 2025.

“If everything goes well, we will be double digit on Miu Miu [in 2026], but with this world things could be different,” Guerra said on the conference call.

Group retail sales rose at constant exchange rates in all five geographic regions – 11 percent in Asia Pacific excluding Japan, 5 percent in Europe, 18 percent in the Americas, 3 percent in Japan and 15 percent in the Middle East.