Prada and Miu Miu Don't Know the Luxury Slowdown

In the midst of a luxury slowdown, Prada and Miu Miu are on the up again.

On Tuesday, Prada Group shared its financial report for the full year 2024, revealing another year of solid growth for Prada, which recorded a 4% increase in retail sales during the period, and a record year for Miu Miu, which saw retail growth climb an impressive 93% in the same time frame.

Overall, Prada Group’s revenues climbed 15% (or 17% at constant exchange rates) to reach €5.43 billion EUR, up from €4.72 billion EUR in the year prior. Meanwhile, net profit grew 25% to €839 million EUR, up from €671 million EUR in 2023, and the group reported a healthy balance sheet with a net cash position of €600 million EUR, a sizable increase from last year’s €197 million EUR.

“We ended 2024 with very positive results across our brands, marking four consecutive years of double-digit, like-for-like growth, coupled with margin expansion and cash generation, resulting in a very sound balance sheet,” said Andrea Guerra, group chief executive officer. “We continued to make progress in terms of brand desirability, retail productivity and strength of our organization, with disciplined and rigorous execution across the board.”

Prada Group is surging ahead of its luxury competitors, including Kering and LVMH, whose big-ticket labels have suffered from the industry-wide slowdown—which is one part caused by post-pandemic spending fatigue, another the product of high inflation rates and a third the product of a slowing economy, mounting debt crisis and real estate crash in China, a target market for high-end labels.

Thanks to Prada and Miu Miu’s sharp brand identities and popular key products, like Prada’s Symbole sunglasses and Miu Miu’s Arcadie bag (both of which claimed spots on the Lyst Index’s top 10 hottest products last year), Prada Group continues to swim in positive territory. Notably, Miu Miu, which the Lyst Index named the world’s most popular brand in the first quarter of last year, is the driver behind many of Gen Z’s most profitable (and “duped”) fashion trends, and the subversive label has cleverly expanded its product categories to include bag charms and tricks, which come at entry-level prices from roughly €379 EUR to €995 EUR. As a result, new luxury consumers flocked to the brand, while demand for bag charms surged 352% in the final months of the year.

Prada, too, looks out for its younger consumers by maintaining a lower price point for its Re-Nylon products. The brand has, however, continued to raise its average and exit prices across the board, in line with increases across the industry (the average US price of luxury goods is up 61% when compared to 2019).

Looking ahead, Geurra recognizes the “clear opportunity” to continue to drive Prada’s market share. Meanwhile, at Miu Miu, the company plans to “consolidate its success” by sharpening its positioning, enriching its product portfolio and fostering further customer engagement.

See Prada Group’s full 2024 financial report here.