Prada SpA sales jumped as the Italian fashion group benefited from shoppers splurging on Prada loafers and Miu Miu pocket bags.
(Bloomberg) — Prada SpA sales jumped as the Italian fashion group benefited from shoppers splurging on Prada loafers and Miu Miu pocket bags.
Net revenue in the first quarter rose 22% at constant exchange rates, the company said in a statement. Japan, Europe and Asia Pacific led the growth while the Americas saw the slowest demand, expanding at 5%. The release Thursday marks the first time Hong Kong-listed Prada has issued a first-quarter trading update.
Prada and Miu Miu’s latest designs have proved popular with fashionistas around the world. The brands took the top two spots in a quarterly ranking by Lyst, which tracks both the most searched-for brands and products on its own shopping app and mentions on social media. Lyst in particular highlighted Miu Miu’s popular pocket bag, which sells for €2,100 ($2,295).
The fashion group recently reorganized its governance with Miuccia Prada, granddaughter of the label’s founder, and Patrizio Bertelli stepping down as co-chief executive officers and Andrea Guerra taking on the leadership role.
Miuccia Prada and Bertelli are still involved in running the group as executive directors, and Prada is also designer for the namesake label along with Raf Simons. She’s also creative director of Miu Miu. That brand’s autumn/winter ready-to-wear show in Paris generated buzz with an event featuring Emma Corrin, known for playing Princess Diana in The Crown, taking the runway wearing a sweater paired with sequin panties.
Guerra reiterated in the statement that the company’s priority for this year is to boost its store productivity, while Bertelli called the quarterly performance “solid,” adding he was confident for the future.
Prada, whose shares have jumped about a quarter so far this year, is likely to release targets shortly, following the appointment of Guerra, Edouard Aubin, analyst at Morgan Stanley wrote in a note on April 20. “We would expect a capital markets day from the company to upgrade its mid-term financial target soon,” he said.
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