By
Bloomberg
Published
Jul 30, 2024
Prada SpA sales jumped as the Italian fashion group continued to see strong growth amid a wider slowdown in the luxury industry.
Net revenue in the first half grew 17% at constant exchange rates, Prada said in a statement Tuesday. That was in line with analyst estimates.
Prada has been outperforming its high-end fashion rivals thanks to the success of its products among Gen-Z consumers and extraordinary growth rates at sister label Miu Miu, where retail sales jumped 95% in the second quarter.
During the period, Miu Miu and Prada were in the top three “hottest” names in a ranking compiled by Lyst Index, which tracks searches and social media mentions for brands and products.
In the ranking, Lyst also highlighted a Prada ad campaign featuring actress Scarlett Johansson, which has drawn more than 6 million YouTube views.
Prada’s Japan retail sales jumped 55% in the first half helped by strong tourism flows. The country has been a favorite destination for Chinese customers taking advantage of the weak yen to pick up pricey goods during visits to the country. Asia Pacific, which includes the crucial China market, grew 12% during the period.
Prada’s results Tuesday mark a stark contrast with a mostly weak earnings season for luxury brands, pointing to a clear slowdown in demand.
Hermès International SCA has recently outperformed industry leader LVMH Moët Hennessy Louis Vuitton SE as well as Gucci owner Kering SA, in a sign that the wealthiest consumers haven’t cut back as much as so-called aspirational clients, who are more likely to curb spending amid inflation worries.
