Prada first-quarter revenue rises 3%, driven by sales in Americas
Prada’s Q1 2024 Financial Performance Overview
By Elisa Anzolin
MILAN, April 30 (Reuters) - Revenue at Italian luxury group Prada rose 3% at constant exchange rates in the first quarter, excluding the contribution of Versace, with double-digit sales growth in the Americas offsetting weakness in Europe and the Middle East.
Group Revenue and Analyst Expectations
Group revenue totalled 1.4 billion euros ($1.64 billion) in the January-March period, broadly in line with an analysts' consensus compiled by Visible Alpha.
Sales Acceleration and Current Trends
Sales accelerated in March, in particular, and continued to rise this month, excluding the impact of the Middle East crisis, CEO Andrea Guerra told analysts.
Versace’s Contribution and Integration
Versace, which Prada acquired last year and is in the process of integrating and re-launching, contributed 143 million euros to quarterly revenue.
Performance and Leadership at Versace
The Italian group said that Versace, which recently hired Pieter Mulier as its new creative director, performed in line with expectations.
Miu Miu’s Growth and Group Strategy
Miu Miu, a smaller label that last year drove the group's revenue growth, slowed its pace and its sales rose by 2.4% in the quarter.
CEO Statement on Group Performance
"The group delivered another quarter of growth in a disrupted environment and against the most challenging comparison base of the year," Guerra said in a statement, adding that the group aims to deliver above-market growth.
Regional Sales Breakdown
Americas and Asia Pacific
Retail sales grew 15% at organic level in the Americas, supported by strong local demand, and were up 5% in Asia Pacific, driven by China and South Korea.
Europe and Middle East
European Market Trends
Europe was down 6% due to weaker spending by travellers but also a modest decline in local demand. However, the managers said they have seen "encouraging signs in terms of travel spending" recently.
Middle East Impact
Sales in the Middle East region dropped 22% due to the Iran war. The conflict also impacted other regions, as tourists from the Middle East and Asia found it more difficult to travel.
(Reporting by Elisa AnzolinEditing by Keith Weir and Tomasz Janowski)
