Today's Edition
Milan (AFP)
Italian luxury fashion house Prada reported a bumper set of results for 2024 on Tuesday, defying analysts' expectations and the crisis in luxury markets.
Net profit jumped 25% to 839 million euros, more than the 820 million forecast in the Factset Estimates survey, thanks to double-digit growth in sales in Asia and Europe.
The results are being closely watched amid speculation about Prada's forthcoming acquisition of Italian label Versace.
US parent company Capri Holdings has put Versace up for sale and entered exclusive negotiations with Prada at the end of February.
Prada has already set the price at nearly 1.5 billion euros and could finalise the agreement before the end of the month, according to the Bloomberg news agency.
Turnover of Prada, which is listed in Hong Kong, rose to 5.4 billion euros in 2024, up 15 percent on current exchange rates.
"We are pleased to see that our strategy continued to deliver above-market performance, notwithstanding the challenging environment," said group chairman and executive director Patrizio Bertelli.
The slowdown in luxury goods consumption worldwide, particularly in China, is affecting almost all of Prada's competitors, which have recorded falls in sales and profits.
But the Prada brand has experienced "solid growth" with a four percent increase in its retail sales at constant exchange rates over 2024 and also in the fourth quarter, the group said.
Sales of sister brand Miu Miu, which targets a younger clientele, have exploded, soaring 93 percent in 2024 and 84 percent in the fourth quarter.
