Markets, creativity, pricing, through to acquisitions made (Versace) or imagined (Armani). In the conference call following the publication of the quarterly report (+6% in revenues), CEO Andrea Guerra (in photo) unveiled the strategies of Prada group, and pointed out how both Prada and Miu Miu have accelerated in terms of leather goods offering.
Prada Group’s strategies
Guerra said consumer spending did not change much in the third quarter. “In China, the worst is over”, WWD reports. “I don’t think we will ever see again in the near future what we saw in the last decade. We have had fewer Americans in Europe, and obviously their influence on our performance in Europe has diminished”. The group’s CEO hopes that in the next six months the latest creative changes in designer labels will benefit fashion and luxury. “Which everyone would love. I think it will help this industry to become more desirable again”. Regarding the company, Guerra said, “We haven’t been too innovative, but we are here, authentic, very committed to our creative leadership, contemporary art, culture and craftsmanship. We will continue to invest in our creativity”.
Prices and mergers
Prada will apply price increments in two rounds in 2026, but Guerra said its “philosophy is not changing”, a philosophy that wants to be “very solid on our entry price, which doesn’t mean reducing it, but keeping it credible“. This implies raising the positioning and thus the prices. “We have to figure out how we can put in some new products, and how we can move upward”. Guerra is confident of improvement in the higher end where “we have not been serious enough and maybe not brave enough at times, but where we are credible”. Meanwhile, the acquisition of Versace is yet to close: 15 days. About the group’s interest in Armani, Guerra clarifies, “We have not been invited. We have great respect for the brand, but I wouldn’t consider this a realistic option today“.
Photo: Courtesy of Prada Group
