Prada S.p.A.

Prada Group reported FY2025 net revenues of EUR 5.7 billion, up 9% year over year at constant FX and up 8% organically; FX was a 380 bps headwind, so reported growth at current FX was 5%. Retail sales totaled EUR 5.1 billion, up 8% organically. Adjusted EBIT was EUR 1.32 billion with a 23.2% margin, and gross margin was 8.3%, up 50 bps year over year. Net income was EUR 852 million, up 2%. CapEx was EUR 617 million, or EUR 535 million excluding real estate, and the year ended with net debt of EUR 466 million after EUR 620 million of CapEx cash out, EUR 1.2 billion for the Versace acquisition, and EUR 420 million of dividends. For 2026, management expects Versace revenue to decline mid-single-digit at constant FX, likely high single digit at current FX, gross margin to be relatively stable, and EBIT loss to remain in the low double-digit millions. At the group level, Prada said it expects a solid year for Prada, another year of growth for Miu Miu, continued meaningful FX pressure, and Versace to dilute margins in 2026 before progressive improvement from 2027.

Andrea Guerra described 2025 as a difficult year for the industry but emphasized Prada Group’s resilience, saying retail sales rose 8% like-for-like and profitability remained steady despite substantial investments in people, digital tools, brand desirability, store upgrades and hospitality. He said the company is entering a ‘new journey’ with Versace while continuing to focus on productivity, efficiency and a ‘new normal’ in luxury. His tone was confident but cautious, especially on 2026, where he repeatedly avoided giving precise guidance and stressed uncertainty around the broader environment and FX.

Andrea Bonini led with the key numbers: EUR 5.7 billion of revenue, EUR 1.32 billion adjusted EBIT, 23.2% margin, EUR 852 million net income, and gross margin at 8.3%. He highlighted that pre-Versace margin was steady versus 2024 despite significant investments and FX headwinds, and noted that cash generation kept the balance sheet healthy even after EUR 1.2 billion for Versace, EUR 620 million of CapEx cash out and EUR 420 million of dividends. On 2026 Versace, he said the brand will undergo a transition year with a cleaner collection structure, stronger discount discipline, progressive wholesale stabilization, relatively stable gross margin, and an EBIT loss that should not be much worse than FY2025, while group CapEx as a percentage of sales should begin to decline.

Analysts focused heavily on how fast Prada and Miu Miu can grow in 2026, and management declined to give formal guidance, though Guerra said Miu Miu could be double-digit if things go well. Questions on Versace centered on the size of the expected sales decline and losses; management said the brand should see mid-single-digit constant-FX revenue contraction, with losses kept to a low double-digit level, but did not quantify more precisely. On the Middle East, Guerra said Qatar, Bahrain and Kuwait are the most difficult markets, while Saudi Arabia is largely local-client driven and the UAE mix is roughly one-third locals, one-third expat, and one-third tourists.