Although the luxury goods industry experienced a sharp slowdown in 2025, the Italian Prada Group managed to maintain its growth trajectory. Published on 5 March, its annual results exceeded financial experts' consensus forecasts, driven mainly by the Miu Miu brand, as Prada itself recorded a 1% decline. In this context, Versace will need to quickly emerge from the red.
In 2025, Prada recorded €5.7 billion in sales, representing organic growth of around 8% year-on-year. Net profit reached €852 million, representing a 2% increase over the previous financial year. For the group, this is the fifth consecutive year of growth. The results exceeded analysts' forecasts, who had been cautious and predicted a 4.5% increase in turnover.
Miu Miu as the group’s main growth engine
CEO Andrea Guerra praised the ‘solid performance’ based on ‘meticulous execution’ of the group's strategy. In a luxury sector marked by stagnant markets, particularly in China, Prada is demonstrating greater resilience than many of its competitors.
This momentum is largely driven by the Miu Miu brand, which has become the group's main growth engine. In 2025, sales of the label, which is designed for a younger clientele, jumped 35%. While this growth remains spectacular, it still marks a slowdown compared to 2024, when turnover grew by 93%. The slowdown was particularly noticeable in the last quarter.
In contrast, the Prada brand itself showed more moderate growth. Sales for the flagship brand fell by 1% over the year as a whole, despite a slight rebound of 0.4% in the fourth quarter.
Geographically, the group continues to rely on solid growth in Asia-Pacific, its largest market, where sales are up 6%. The Americas are performing even more remarkably, with a 12% increase. In Europe, the group's second-largest market, growth remained more moderate in the context of more cautious consumer spending.
Alongside these results, Prada must now integrate a potentially important but still fragile strategic asset: Versace, acquired in 2025 from Capri Holdings for €1.25 billion. The Italian brand generated revenue of €684 million in 2025, while remaining in deficit. However, the Milan-based group anticipates a gradual recovery for the Medusa brand starting next year. To support this repositioning, Prada has appointed designer Pieter Mulier as Versace's creative director and implemented several cost-optimisation measures, such as reducing the brand's secondary lines. Mulier will take up his post next July.
Key takeaways
• Prada shows resilience despite the slowdown in the luxury sector, reporting €5.7 billion in sales (+8%) and €852 million in net profit (+2%) in 2025.
• Miu Miu drives the group’s growth, with sales up 35%, while the Prada brand itself declined by 1%.
• Versace emerges as the group’s next strategic challenge, with €684 million in revenue but still operating at a loss following its acquisition.
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