Prada posts 8% organic revenue growth in 2025, margins dented by versace deal

Prada Reports 8% Organic Revenue Growth in 2025, Margins Hit by Versace Deal

Prada’s 2025 Financial Performance and Versace Acquisition Impact

By Elisa Anzolin

Organic Revenue Growth and Brand Performance

MILAN, March 5 (Reuters) - Italian luxury group Prada reported on Thursday an 8% rise in 2025 organic revenues, driven by strong growth at its smaller label Miu Miu, although margins were dented by the acquisition of Versace, which will continue to weigh on profitability this year.

Prada completed the 1.3 billion euro ($1.51 billion) Versace deal last December, marking a strategic shift after years of steering clear of acquisitions, and is now focusing on reviving the brand, known for its bold, glamorous style. 

Revenue Breakdown by Brand and Region

While group net revenues rose to 5.72 billion euros in 2025, retail sales at the flagship Prada brand fell 1% despite a slight improvement in the fourth quarter. Sales at Miu Miu jumped 35% in 2025, after almost doubling in 2024. 

Asia Pacific and the Americas posted the strongest sales growth, while Europe grew more modestly amid softer tourism flows.

Profitability and Margin Analysis

Prada reported an adjusted EBIT margin of 23.2%, including the dilutive impact of Versace, down from 23.6% a year earlier.

CEO Commentary on Growth and Outlook

"The results achieved in 2025 mark five consecutive years of growth for the group, a solid performance delivered against tough multi-year comparables," CEO Andrea Guerra said in a statement.

He added that Versace would drive a dilutive effect on the group operating profit margin this year, but expected a "progressive improvement" from 2027.

Plans for Versace

Prada will focus on integrating and relaunching Versace in the coming years. The label posted an operating loss last year and is expected to report a similar 2026 result. Versace revenues totalled 684 million euros in 2025, Prada said. 

Leadership Changes and Strategic Initiatives

The brand has recently appointed Pieter Mulier, the outgoing designer of Richemont-owned Alaia, as its new creative director. Emmanuel Gintzburger has been confirmed as CEO, while Lorenzo Bertelli, heir to the Prada family, has taken on the role of executive chairman.

Prada said that alongside the creative transition, it plans to streamline Versace's store network and gradually scale back the off‑price channel.

Outlook for Versace’s Performance

"The creative leadership transition and the initial repositioning steps are expected to translate into some degree of topline contraction," it said. 

(Reporting by Elisa Anzolin, editing by Andrei Khalip)