The Prada group is running fast. 2022 accounts have exceeded expectations: 4.2 billion euros in revenues and net profit of 465 million euros, +58% on 2021. A real bang, solid and reassuring to the point that, in 2023, the group could already reach 4.5 billion euros in revenues. Well in advance, therefore, to the medium-term target set in November 2021. CEO Andrea Guerra indicates the priorities for 2023: investing in marketing and producing even more leather goods.
Even more leather goods for Prada
The group headed by Patrizio Bertelli and Miuccia Prada has stated that it wants to further develop the accessories category, both by launching new bags and by growing the potential icons of the existing offering. This, in relation to the Prada and Miu Miu brands, is Andrea Guerra’s stated 2023 priority (source: Business of Fashion). In 2022, sales of leather goods increased by 18% to 1.86 billion euros. Ready-to-wear, on the other hand, grew by 27% to 1.08 billion euros, while footwear revenues rose by 29% to 691 million euros.
Overall, the performance of the Prada Group beat analysts’ expectations in 2022. Revenues rose by 25% to 4.2 billion euros, compared to the 4.04 billion euros expected by analysts according to Refinitiv data, cited by Reuters. Net profit rose by 58% to 465 million euros. Looking at sales by individual brand, Prada posted +25% to 3.25 billion euros and Miu Miu +20% to 432 million euros. The only discordant note came from Church’s, which recorded a 2% drop in sales to 29 million euros. The Prada group, however, is reorganising the entire activity of this brand, from production to retail, with the aim of greater integration and productivity.
Positivity for 2023
“In 2023, we expect revenue growth to remain solid and above the market average,” says Guerra, adding that China is again “a growth engine”. Thus, there is a good chance that the group will exceed its medium-term revenue target of 4.5 billion euros sooner than expected. “There are the prerequisites: but we have to be cautios,” Bertelli tells Reuters.