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 social media mentions. 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, and creative director of Miu Miu.
That brand’s autumn/winter ready-to-wear show in March generated buzz with a Paris event featuring Emma Corrin, known for her role as Princess Diana in The Crown, taking the runway in a sweater paired with sequin panties.
Miu Miu, although six times smaller in sales than Prada, saw revenue jump 42% during the three months to the end of March, twice the rate of its sister brand.
In a call with analysts Thursday, Guerra said that the smaller label is attracting a younger audience than Prada.
Guerra reiterated that the priority this year is boosting store productivity, while Bertelli called the quarterly performance “solid,” adding that he’s confident for the future.
Guerra said on the call that the company was “happy” with its financial performance in April and sees potential for further price hikes on some higher-priced products.
Prada, whose shares have jumped about a quarter so far this year, is likely to release targets shortly, in the wake of the Guerra appointment, Morgan Stanley analyst Edouard Aubin wrote in an April 20 note.
“We would expect a capital markets day from the company to upgrade its mid-term financial target soon,” he said.
Chief Financial Officer Andrea Bonini on Thursday declined to give an update to analysts on Prada’s plans for a secondary listing.
(Updates with CEO, CFO comments from sixth paragraph.)
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