Prada sales jump as slingback shoes become new fashion hit

BLOOMBERG

Prada SpA sales jumped as the Italian fashion group benefited from a strong appetite for its brushed leather loafers and slingback pumps.
Net revenue in 2022 rose to €4.2 billion ($4.44 billion), up 21% at constant exchange rates, the group said in a statement. Analysts had expected revenue of €4.01 billion. Demand in Europe was particularly strong. Adjusted earnings before interest and taxes soared by more than two-thirds.
Prada in the fourth quarter was the “hottest” name on the Lyst index, which tracks the most searched-for brands and products on the shopping app. Miu Miu, another group brand, was fourth for the period. Prada’s brushed leather pumps, which sell for almost €900, were among the most searched products during the period, Lyst said.
The fashion house recently reorganised its governance, with Miuccia Prada, granddaughter of the label’s founder, and Patrizio Bertelli stepping down as co-CEOs, and Andrea Guerra taking on the leadership role.
Prada and Bertelli are still involved in running the group as executive directors. Prada herself is also designer for the namesake label along with Raf Simons. She’s also creative director of Miu Miu, which debuted its autumn/winter ready-to-wear collection in Paris, featuring a runway appearance by Emma Corrin, known for playing Princess Diana in The Crown.
“We performed well across all product categories and geographies, more than offsetting weakness in China due to Covid-19,” Bertelli said in the statement. Guerra said he expects growth this year to remain “solid and above market average,” adding during a call with analysts that 2023 started well and that the company had an “excellent” Chinese New Year.
The company derives a third of its revenue from the Asia-Pacific region and about the same proportion from Europe. One of Guerra’s main priorities this year will be to boost store productivity, he said.
The release from Hong Kong-listed Prada follows a mixed set of results from other luxury companies, with Hermes International seeing strong demand in China in the last quarter while Kering SA suffered from lackluster demand for its biggest Gucci label.
Prada in October launched a line of fine jewellery made from certified recycled gold, as luxury players branch out into a product area which is helping boost the perception of exclusivity in eyes of the consumers.