Increase in Sales for Prada and Miu Miu as Italian Fashion Group Gains Popularity

Prada SpA's sales surged as the Italian group saw strong demand for some of its trendiest products, such as brushed leather loafers and Miu Miu pumps. Net sales rose 17% at constant exchange rates to 4.73 billion euros ($5.15 billion) last year, the fashion group said on Thursday. Analysts had expected 4.67 billion euros. In the fourth quarter, Prada was the "hottest" name on the Lyst index, which tracks searches and social media mentions for brands and products. Miu Miu was in second place. Prada's brushed leather loafers, which sell for 930 euros, were among the most searched for products, according to Lyst.

Miu Miu, despite being smaller, has been popular among shoppers who consider it a trendsetter. The brand presented its autumn/winter collection in Paris this week with models wearing sunglasses, long-sleeved gloves and cropped leather jackets. Sydney Sweeney, the actress known for her role in the HBO series Euphoria, was among the celebrities in attendance.

The brand's retail sales increased 82% in the final quarter of 2023 compared to 10% for Prada. The group's results follow a mixed performance from its luxury peers as the sector faces a downturn from post-pandemic boom years. Prada shares have gained 25% in Hong Kong since the beginning of the year alone, outpacing rivals such as LVMH Moet Hennessy Louis Vuitton SE and Kering SA.

Overall, Asia-Pacific excluding Japan, its largest region, saw retail sales increase 24% annually, while the Americas remained stable. Sales in Japan increased by 44%. Meanwhile, earnings before interest and taxes beat estimates.

Regarding 2024, CEO Andrea Guerra said the fashion house is aware of "persistent macroeconomic and geopolitical uncertainty" but still intends to record above-market growth. Miuccia Prada, granddaughter of the group's founder, is creative director of Miu Miu and shares those duties with Raf Simons at Prada.