The general uncertainty is affecting the luxury industry. Many companies have to lower their expectations – but not Prada. The key to the success of the Italian fashion group lies partly in Japan.
Luxury brand Prada continues to experience strong growth, maintaining a double-digit rate. On Tuesday, the Italian fashion group announced a 17 percent increase in net sales for the first half of 2024, reaching 2.55 billion euros.
The company describes a «solid half year» in an understated manner. Many luxury industry companies are currently struggling with noticeably cooled growth. Hermes International recently surpassed industry leader LVMH Moët Hennessy Louis Vuitton SE and Gucci owner Kering.
Miu Miu Doubled Sales
This is not the case with Prada: Operating profit rose to 575 million euros in the first six months of the current year, exceeding analysts' expectations.
Retail sales of the Prada brand increased by 6 percent, while sales of the Miu Miu brand almost doubled, the company said.
Chinese Tourists in Japan Boost Sales
Japan, in particular, proved to be a good market in the first half of 2024. Prada's retail sales in Japan rose by 55 percent in the first six months of this year. This is partly due to the numerous Chinese tourists who took advantage of the weak yen to stock up on luxury goods during their trips to Japan.
The Asia-Pacific region, which also includes the crucial Chinese market, grew by 12 percent over the same period. «While we remain vigilant, we stick to our strategy and our goal of achieving solid, sustainable, and above-market growth,» CEO Andrea Guerra said.
