Italian luxury fashion house Prada Group has reported consolidated net revenues of €5.72 billion (~$6.64 billion) for the year ended December 31, 2025, reflecting a 9 per cent year-on-year (YoY) increase and marking 20 consecutive quarters of growth for the company. The results were supported by sustained brand desirability, strong retail execution and continued investment despite a challenging global macroeconomic environment.
Retail sales reached €5.102 billion, up 9 per cent YoY, driven primarily by full-price like-for-like sales across markets. In the fourth quarter (Q4), retail sales rose 9 per cent YoY (+6 per cent organic) despite strong comparatives from the previous year. Group net income increased 2 per cent to €852 million, while adjusted EBIT margin stood at 23.2 per cent, including the dilutive impact of Versace following its acquisition on December 2, 2025.
The Prada brand recorded retail sales of negative 1 per cent YoY, showing improved momentum in the second half and returning to growth in the fourth quarter (+0.4 per cent). The brand-maintained engagement through new retail concepts, including flagship retail opening in New York, and the Prada Alexandra House concept in Hong Kong, the group said in a press release.
Meanwhile, Miu Miu delivered strong growth, with retail sales rising 35 per cent year on year despite high comparatives from FY24 (+93 per cent). Fourth-quarter sales increased 20 per cent, supported by balanced growth across regions and product categories. Store expansions and renovations in Wuhan, London and Tokyo also contributed to stronger customer engagement.
Patrizio Bertelli, chairman and executive director of Prada Group, said, “We are pleased to report another solid set of results in 2025, with healthy growth and sound profitability, achieved in a challenging macroeconomic and industry context. The desirability of our brands remains rooted in creativity, consistency and authenticity. Our manufacturing platform is a key strength, supporting quality, craftsmanship and the operational agility required by the market. The acquisition of Versace marks a significant step in the strategic evolution of the Group, adding a highly distinctive and complementary brand to our portfolio and contributing to our long-term growth ambitions.”
The results achieved in 2025 mark five consecutive years of growth for the group; a solid performance delivered against tough multi-year comps. Meticulous execution, built on constant attention to routines across functions, continued to underpin the progress of our brands. Over the year, Prada showed good resilience, proving to be on a solid strategic stance; Miu Miu delivered yet another year of remarkable growth,” said Andrea Guerra, group CEO.
“With the acquisition of Versace, we welcomed a brand with incredible heritage and awareness; this new journey will demand respect, care and patience. Looking ahead, we remain committed to the ambition to deliver above-market growth for the Group. With respect to profitability, ex Versace, we continue to aim for organic margin progression; Versace’s consolidation will drive a dilutive effect on the group EBIT margin in FY-26, with a target to resume progressive improvement from FY27,” added Guerra.
Regionally, Asia Pacific recorded 11 per cent growth (+10 per cent organic) during the year, while Europe rose 5 per cent (+4 per cent organic), though momentum softened in the second half due to lower tourism and high comparison bases.
The Americas remained the strongest region, posting 18 per cent growth (+15 per cent organic) supported by strong local demand. Japan grew 3 per cent, while the Middle East advanced 15 per cent, though growth moderated in the latter half of the year.
Prada continued to advance its strategic investment programme with capital expenditure of €535 million, excluding real estate. The group maintained a strong financial position with net debt of €466 million, supported by robust cash generation.
The company also progressed its sustainability agenda across environmental and social initiatives. Investments in green energy and operational improvements helped the group exceed its science-based targets for Scope 1 and Scope 2 greenhouse gas emissions. Initiatives in supply-chain traceability, water stewardship and responsible chemical management were also expanded.
Versace reported net revenues of €684 million in FY25, though the brand incurred operating losses. Prada expects some revenue contraction in 2026 as the brand undergoes creative transition and distribution repositioning, with profitability improvements targeted from 2027 onwards.
Fibre2Fashion News Desk (SG)
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