MILAN (Reuters) – Italian luxury group Prada on Tuesday reported 21% growth in operating profit last year, in line with analysts’ forecasts, amid speculation about a potential acquisition of smaller rival Versace.
The group, which has been defying a slowdown in luxury demand and outperforming many of its peers, reported a 17% increase at constant exchange rates in net revenues in 2024, reaching 5.43 billion euros ($5.72 billion) and matching analysts expectations, according to data from LSEG.
Revenues grew by double figures across all regions, with the exception of the Americas region, which reported a 9% growth thanks to an improvement in the second half of the year.
The statement made no mention of the reports of a potential Versace deal.
In the fourth quarter itself, retail sales, which account for most of total sales, rose 18%, thanks mainly to the smaller Miu Miu brand. Growth at Prada’s main brand was more moderate, around 4% year-on-year in the period.
“Looking forward, while being mindful that the complex industry dynamics are likely to persist, our priorities remain unchanged,” said Chief Executive Andrea Guerra.
“At Prada, we have a clear opportunity to continue to drive market share, while at Miu Miu we shall consolidate its success,” he added.
The group had a net cash position of 600 million euros at the end of December, which could help to fund a potential acquisition.
($1 = 0.9485 euros)
(Reporting by Elisa Anzolin; Editing by Keith Weir)
