MILAN — After Prada Group turned in a solid nine-month performance, group chief executive officer Andrea Guerra focused analysts on the importance of brand desirability, the business’s ability to interest both wealthy and new customers and the impact of unusually warm weather.
“We could discuss at length how many different things are happening, ups and downs, different tourist flows and the weather. In a quarterly conversation, it’s beginning to be complicated to say if you’re doing well [or not] so I think the nine months are becoming more and more important in the longer term,” Guerra said during a conference call. “In any case, what is important today is that you are constantly able to show how desirable your brands are, how proactive you are in the market and what level of conversation you’re able to keep with your best customers. Life has changed, and I think we are ready for this.”
The numbers backed Guerra’s stance. In the nine months ended Sept. 30, group revenues rose 12 percent to 4.54 billion euros compared with 4 billion euros in the same period last year.
Excluding Versace, which contributed with sales of 441 million euros, sales were up 4 percent in constant currencies.
In the third quarter, group revenue climbed 11 percent at constant currency.
“The clear pattern is that the more affluent clients are in great shape. I think that our job is to [target] these wealthy clients, and allow them to spend more on their dreams,” while also capturing new clients. “There is no industry, no company that is healthy without new clients and this is the job we have to do,” said Guerra.
While not participating in the call, Patrizio Bertelli, Prada Group chairman and executive director, said in a statement that “the environment remains complex and volatile, requiring focus, agility and rigorous execution. Against this backdrop, we continue to build on the foundations of creativity, product excellence and manufacturing know-how.”
He touted the recent opening of the production facility in Piancastagnaio, Tuscany, dedicated to leather goods, which “reiterates the group’s industrial vision, rooted in the respect for the territory and the quality of the working environment. While market turbulence is likely to persist, we are confident in our ability to navigate the challenges ahead and will continue to build for the long term, staying true to our identity and leveraging the strengths of our organization.”
Indeed, Guerra said that “in a world that has been more complex and I would say more unpredictable,” the third quarter ended “with a set of solid results.”
Performance of Prada and Miu Miu
Prada’s retail sales were up 2 percent at constant exchange rates to 2.41 billion euros in the nine-month period and up 1 percent in the third quarter, supported by a positive performance in Americas and Asia-Pacific, including China and broadly stable trends in Europe and Japan year-over-year.
Miu Miu’s retail sales grew 1 percent at constant exchange rates in the 9 months to 1.15 billion euros, with a 3 percent decrease in the third quarter, reflecting challenging comparisons — a gain of 41 percent in the nine months of 2025 and a 29 percent increase in the third quarter last year. Over the period, visibility was supported by itinerant pop-ups under the new Miu Miu Vinyl Club format and the brand unveiled the Miu Miu Shanghai IFC lounge, a one-of-a-kind environment providing intimate hospitality.
“We think the appreciation for Miu Miu is very positive, and the enthusiasm around its spring/summer 2027 show will be a kind of safeguard for 2027,” said Guerra. “For sure, the slowdown of some of the Asian regions is influencing more Miu Miu compared to Prada due to their greater contribution to the brand.”
Responding to an analyst who pointed to Miu Miu’s growth slowdown, Guerra said: “What we need to observe today is the brand’s equity, durability, its communication, the brand in the world — and it’s hot, it’s positive, it’s successful. We see really no shadows today in any part of the world. The brand has seen five years of constant growth, almost multiplying its revenue by five, so I think we now need to give time to digest, to normalize and restart again. We need to work, to be relaxed and do our job.”
He characterized Miu Miu’s performance as “steady” and said “its positioning remains sharp and the retail metrics very robust.”
Performance by Channel
In the nine months, group retail sales rose 8 percent to 3.93 billion euros with a stable third quarter in a more challenging backdrop.
The wholesale channel was up 33 percent to 428 million euros, reflecting a recovery of shipments to department stores in the U.S., said Guerra in response to a question by an analyst who did not explicitly point to the troubles last year at Saks Fifth Avenue and Neiman Marcus.
Royalties soared 77 percent to 178 million euros, boosted by the strong performance of eyewear and beauty, licensed to EssilorLuxottica and L’Oréal, respectively.
Guerra also commented on Versace’s integration, which is progressing on track, “in the proper direction and we begin to see part of what the collections would look like and so far we’re all very happy. We’re not just looking and talking about ideas, but we’re looking at products at this stage and the team is ready.” Chief creative officer Pieter Mulier, named to the post on July 1, will introduce his first designs for Versace early next year. No mention was made of a potential new CEO following the exit of Emmanuel Gintzburger in July.
Performance by Geographic Markets
In the nine months, group retail sales in Asia-Pacific rose 10 percent to 1.34 billion euros. The third quarter remained stable, with subdued traffic environment in mainland China offset by continuing positive trends elsewhere in the region, particularly in South Korea, Hong Kong and Macao.
“In China, we had some market share to recover, and we did, really improving the level of hospitality in the main malls, the relationship with our landlords and the ability to do certain kinds of events in their premises. I think that we have been able to be very close to the Chinese consumer,” said Guerra, citing Prada Rong Zhai, the cultural center in downtown Shanghai, as an excellent vehicle to communicate with its customers.
As for Miu Miu, he said, “we are keeping up.” He admitted the challenges in the region, but said, “we have seen an improvement in terms of traffic and we have seen a lot of Chinese traveling. We had really good nine months for Prada with our Chinese, Korean and American customers and I think we were in line with the best.”
Retail revenue in Europe was up 4 percent to 1.18 billion euros.
“In Japan and in Europe, we started slowly, especially at the beginning of the year, but we have recovered, said Guerra. “I think we are catching up also with this fantastic Prada Galleria, an unbelievable stimulus; I’m very proud of it,” he said of the new retail and hospitality project unveiled in September in Milan, a multifloor experience of fashion, food and culture, offering a full immersion into Prada’s world, including the Pradasphere permanent exhibition.
“It’s a fantastic brand place, but also a great revenue place. We are trying to be more precise and clear in everything we do, and I think what we have done in Milan Galleria is very clear. This is an asset we have, our roots, our heart. It’s a place where, if you’re a Prada lover, you understand where we come from and where we’re going,” he said, teasing similar initiatives for Miu Miu and Versace. “We’re not a logo. We’re not a tag, but we have a DNA which has a story to tell, opinions about the society and here we are trying to carve future cultural trends in the society.” Asked about the recent riots in Milan, Guerra said the store and its employees were not targeted.
Retail sales for the nine months in the Americas climbed 29 percent to 851 million euros driven by robust domestic demand. In the third quarter, they were up 23 percent. “Fall in U.S. came a little bit late, so Labor Day was a little bit weaker. But I would say that all in all, if all the world were like the U.S. this year, we would all be happy,” said Guerra.
The executive addressed the issue of the hot weather as being increasingly relevant to traffic, leading “a sharp seasonal delay of fall/winter retail sales” in the third quarter. “Ready-to-wear is important for us, and we are finally seeing in the last two, three weeks the growth and the acceleration of a little bit heavier ready-to-wear so that is a good signal. I always say this, October is a sort of ‘useless’ month before the holiday season. We are ready for the holiday season and we will continue to try to be always above market average for the next period.”
Local demand supported a 5 percent gain in Japan to 424 million euros at constant exchange rates, but at current exchange sales were down 6 percent.
Retail sales in the Middle East fell 25 percent to 136 million euros as conditions in the region remain challenging, albeit improving quarter-on-quarter, sustained by local consumption. In the third quarter they were down 18 percent.
“Middle Easterners are buying more at home,” said Guerra. “We have seen them in the last 60 days back in some of the important countries and I don’t see any major changes going forward.” Given their “love of precious, handmade products,” his outlook was positive.
Asked about a potential dual listing, chief financial officer Andrea Bonini said, “We are aware of the potential benefits and of the additional requirements. It’s an option that is worth considering from time to time and at the moment, we’re not in a position to share any news in relation to it.”