Prada’s sales up 16% in first quarter as Miu Miu shines

REVENUES at Italian luxury group Prada rose 16 per cent at constant exchange rates in the first quarter, driven by a jump in Miu Miu sales and continued growth in Asia.

The family-owned company posted on Wednesday (Apr 24) sales of 1.19 billion euros (S$1.7 billion), slightly above a 1.14 billion euros consensus cited by analysts, defying a slowdown across the luxury sector.

Europe and Asia-Pacific, and in particular Japan, where sales were boosted by tourists, drove the sales growth, while the Americas lagged.

Among the brands, flagship label Prada’s retail sales grew by 7 per cent in the January-to-March period, while Miu Miu, which accounts for around 15 per cent of total sales, posted an 89 per cent increase.

“Over the first quarter, we delivered a solid performance in a more challenging market environment”, Prada Group chairman Patrizio Bertelli said in a statement.

“While the industry is experiencing new dynamics, we retain our ambition to deliver solid, sustainable and above market growth,” chief executive Andrea Guerra said.

French luxury group Kering said on Tuesday it expected a 40 to 45 per cent plunge in first-half operating profit, after first-quarter sales declined. LVMH’s sales slowed down in the first quarter, with only 3 per cent growth. REUTERS