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Prada Navigates Global Unrest: Q1 Sales Meet Expectations
30 Apr
Summary
- Prada's first-quarter revenue reached €1.43 billion, meeting analyst expectations.
- Miu Miu's sales growth slowed to 2% due to the war in the Middle East.
- Middle East retail sales for Prada dropped by 30% due to weakened demand.
Prada SpA announced first-quarter revenue of €1.43 billion, aligning with analyst forecasts and demonstrating resilience amid global instability. The Italian fashion house experienced a notable slowdown in its typically high-performing Miu Miu brand, with sales growth decelerating to 2%.
This softening is directly linked to the ongoing conflict in the Middle East, a region crucial for luxury goods consumption. Consequently, Prada reported a significant 30% decrease in its retail sales within the Middle East. The acquisition of Versace in December contributed €143 million to the revenue, performing as expected.
Concerns over luxury demand extend beyond Prada, with other major players like LVMH also observing impacts in key shopping destinations. Prada's shares traded in Hong Kong have seen a considerable decline of 23% this year.
