MILAN — Prada Group reported solid revenue growth for the first nine months of 2026, with chief executive officer Andrea Guerra highlighting brand desirability, customer engagement and changing consumer behaviour as key priorities amid an unpredictable luxury market.

For the nine months ended September 30, group revenue increased 12 percent to €4.54 billion, compared with €4 billion in the same period last year. Excluding Versace, which contributed €441 million in sales, revenue grew 4 percent at constant exchange rates. Third-quarter revenue increased 11 percent at constant currencies.

Speaking during a conference call with analysts, Guerra said short-term results were becoming harder to interpret because of shifting tourist flows, changing market conditions and unusually warm weather. He argued that performance over longer periods offered a more meaningful picture of a brand’s strength.

“What is important today is that you are constantly able to show how desirable your brands are, how proactive you are in the market and what level of conversation you’re able to keep with your best customers,” Guerra said.

He added that affluent consumers remained in a strong position, making it important for the group to deepen relationships with wealthy customers while attracting new ones.

“There is no industry, no company that is healthy without new clients,” he said.

Prada and Miu Miu Deliver Mixed Results

Prada’s retail sales rose 2 percent at constant exchange rates to €2.41 billion during the nine-month period. Third-quarter sales increased 1 percent, supported by positive performances in the Americas and Asia-Pacific, including China, while Europe and Japan recorded broadly stable year-on-year trends.

Miu Miu recorded retail sales growth of 1 percent at constant exchange rates to €1.15 billion for the nine months. However, third-quarter sales declined 3 percent as the brand faced difficult comparisons with exceptionally strong results in 2025.

Miu Miu’s retail sales had risen 41 percent during the first nine months of 2025 and 29 percent in the third quarter of that year.

Guerra said the brand continued to enjoy strong consumer interest, pointing to enthusiasm surrounding its Spring/Summer 2027 runway show. He also cited initiatives such as the travelling Miu Miu Vinyl Club pop-ups and the opening of a dedicated lounge at Shanghai IFC as ways of maintaining visibility and strengthening customer relationships.

Addressing concerns about the slowdown, Guerra said the priority was to assess the brand’s long-term equity, durability and global appeal rather than focus exclusively on quarterly growth.

After five years of expansion that saw its revenue increase almost fivefold, he said Miu Miu needed time to absorb its growth and establish a more normal pace.

He described the brand’s performance as steady, with its positioning remaining strong and retail indicators robust. However, he acknowledged that softer conditions in some Asian markets were affecting Miu Miu more significantly than Prada because of the former’s greater exposure to the region.

Miu Miu, spring 2027 Giovanni Giannoni/WWD

Retail Leads Growth as Wholesale and Royalties Increase

Across the group, retail sales rose 8 percent to €3.93 billion over the nine months, with the third quarter remaining stable despite a more challenging environment.

Wholesale revenue increased 33 percent to €428 million, reflecting a recovery in shipments to US department stores, Guerra said.

Royalties surged 77 percent to €178 million, supported by the performance of eyewear and beauty products licensed to EssilorLuxottica and L’Oréal, respectively.

Prada Group chairman and executive director Patrizio Bertelli said the business continued to operate in a complex and volatile environment requiring discipline, agility and effective execution.

He highlighted creativity, product quality and manufacturing expertise as the foundations of the group’s strategy.

Bertelli also pointed to the recent opening of a leather goods production facility in Piancastagnaio, Tuscany, describing it as an expression of the group’s long-term industrial vision and commitment to its local communities and working environment.

Versace Integration Progresses

Guerra said the integration of Versace was progressing according to plan and that the group was beginning to see the direction of upcoming collections.

The brand’s chief creative officer, Pieter Mulier, who was appointed on July 1, is expected to present his first designs for Versace early next year.

Guerra said the team was already evaluating products rather than simply discussing creative concepts, adding that the group was pleased with the direction so far.

The company did not provide an update on the appointment of a new chief executive following Emmanuel Gintzburger’s departure in July.

Asia-Pacific and Europe Show Resilience

Prada Group’s retail sales in Asia-Pacific increased 10 percent to €1.34 billion during the first nine months of the year. Third-quarter performance was stable, with subdued traffic in mainland China offset by stronger trends in other markets, particularly South Korea, Hong Kong and Macao.

Guerra said Prada had worked to strengthen its position in China by improving hospitality in major shopping malls, building relationships with landlords and organising events that brought the brand closer to local consumers.

He cited Prada Rong Zhai, the group’s cultural venue in Shanghai, as an important platform for engaging customers.

The executive also noted an improvement in regional traffic and continued travel by Chinese consumers. Prada performed well among Chinese, Korean and American customers during the nine-month period, he said.

In Europe, retail sales increased 4 percent to €1.18 billion. Guerra said performance in Europe and Japan had started slowly but subsequently improved.

He highlighted the Prada Galleria project in Milan, unveiled in September, as an example of the group’s efforts to combine retail with culture, food and hospitality. The multilevel destination includes the permanent Pradasphere exhibition, offering visitors an immersive look at the brand’s history and creative identity.

Guerra described the project as both a cultural destination and a commercial asset, adding that the group was considering similar initiatives for Miu Miu and Versace.

He said the brands sought to communicate their identities and perspectives on society rather than rely solely on logos or labels.

Retail sales in Japan rose 5 percent at constant exchange rates to €424 million, supported by local demand. At current exchange rates, however, sales declined 6 percent.

Americas Outperform as Middle East Remains Challenging

The Americas were the group’s strongest-performing region, with nine-month retail sales rising 29 percent to €851 million on robust domestic demand. Third-quarter sales increased 23 percent.

Guerra said the autumn season arrived later than usual in the United States, with the Labor Day period proving somewhat weaker. Overall, however, he characterised the market’s performance as encouraging.

The Middle East remained under pressure. Retail sales fell 25 percent to €136 million during the nine-month period, although conditions improved quarter-on-quarter. Third-quarter sales declined 18 percent.

Guerra said consumers from the region were increasingly purchasing luxury goods in their home markets. He nevertheless expressed optimism about demand for the group’s products, particularly given the region’s appreciation for precious materials and handcrafted goods.

Warm Weather Delays Autumn Fashion Sales

Unusually warm weather emerged as a significant challenge during the third quarter, delaying demand for autumn and winter products.

Guerra said the seasonal shift had affected store traffic and postponed purchases of heavier ready-to-wear clothing. However, he reported improved momentum in the weeks leading up to the call.

Ready-to-wear remains an important category for the group, he said, making the recent acceleration in demand a positive sign ahead of the holiday season.

The company expects to continue focusing on brand desirability, customer relationships and product performance as it enters the final stretch of the year.

Prada Group Weighs Potential Dual Listing

Asked whether Prada Group was considering a dual stock-market listing, chief financial officer Andrea Bonini said the company recognised both the potential advantages and the additional obligations involved.

He described a dual listing as an option worth reviewing periodically but said the group had no new developments to announce at present.