The Sales Boom of Miu Miu Drives Prada’s Financial Success

Italian fashion giant Prada has reported a sharp increase in revenue over the past year, significantly supported by the remarkable performance of its premium brand, Miu Miu. While the global market is witnessing a decline in demand for luxury fashion products, Prada has successfully avoided this trend.

In 2024, Prada’s revenue reached €5.43 billion (approximately $5.7 billion), a 17% increase compared to the previous year. The company’s results exceeded analysts’ expectations, which predicted revenue to be no higher than €5.37 billion.

Prada’s net profit rose by 25%, reaching €839 million, also surpassing analysts’ predictions of €812.6 million.

Miu Miu, founded by Miuccia Prada in 1993, achieved record-breaking results last year. According to 2024 data, the brand’s organic growth reached 93%, with fourth-quarter sales alone increasing by 84% compared to the same period last year.

The brand’s popularity growth is particularly evident in the Asian market, where young consumers are actively choosing Miu Miu’s designs. This is happening at a time when many other luxury brands are struggling with declining demand in the Chinese market.

Retail sales of Prada’s main brand also grew by 4% in the last three months of 2024, demonstrating that the fashion house is successfully handling downward market trends.

The company is considering acquiring Versace from Capri Holdings, with an estimated value of €1.5 billion, a move that could further strengthen Prada’s position in the luxury market.

Meanwhile, other luxury brands such as Hermès, Cartier, Richemont, and Burberry also reported positive results in the American market during the fourth quarter of 2024, indicating that the luxury sector is on the path to recovery after the crisis.

Prada continues to reinforce Miu Miu’s success, which has already become the main driving force behind the company’s growth. In February, the brand appointed a new CEO, Silvia Onofri, as part of the company’s leadership’s new strategy.

Prada’s shares on the Hong Kong Stock Exchange dropped by 0.3% to HKD 68.30. The company also declared a dividend of €0.164, providing additional motivation for shareholders.

Miu Miu’s success clearly demonstrates that with a smart strategy, it is possible to overcome a crisis in the fashion industry. Prada has successfully identified the right target audience, enabling it to continue achieving sustainable growth in the future.