The Prada Group’s First Quarter of 2026: A Story of Resilience
There is hardly a luxury group that is immune to the uncertainties that marked the start of 2026, due to the war in the Middle East. And the Prada Group itself, which for several years has been seen as “swimming against the tide” thanks to Miu Miu’s strong performance, is beginning to feel the impact of a situation that Andrea Guerra, the group’s CEO, himself describes as “difficult.” A scenario that is slowing the dynamic growth of recent years without, however, undermining the company’s solidity. Indeed, although Miuccia Prada’s label has entered a phase of maturity (with less explosive growth) and despite the integration of Versace (for which the house has always stated it has specific relaunch phases without any rush), the group closed this first quarter with revenue up 6%, reaching 1.4 billion euros. This increase rises to +14% at constant exchange rates and +3% on an organic basis (i.e., excluding Versace’s contribution, also at constant rates).
Miu Miu slows down amid a high comparison base
Although the Middle East accounts for a marginal share of the group’s revenue (€49 million, down 30% at current exchange rates, and down 22% at constant rates and on an organic basis), representing less than 4%, the region nevertheless weighed on Miu Miu’s results. Miuccia Prada’s label saw growth of “only” 2.4% during the first quarter. As the group points out, this performance was held back by “the most challenging comparison base of the year (+60%) and by a more pronounced impact stemming from the conflict in the Middle East.” Sales in Europe are also slowing, mainly due to a decline in tourist traffic, while the Americas and Asia-Pacific remain growth regions for the brand. “Miu Miu continues to enjoy strong desirability; although its growth trajectory presents us with very high targets, we are reassured by the quality of this growth, achieved without compromise, and we are confident about future opportunities,” commented Andrea Guerra.
The Prada brand returns to slight growth
The group’s flagship brand, Prada, returned to growth, posting a modest increase of +0.4%. This result is in line with the fourth quarter of 2025 and “stems from further improvements in the Americas and Asia-Pacific, particularly in China, Hong Kong, and Macau. Performance was driven by full-price sales, with a steady and gradual improvement over the past few quarters, including in this first quarter of 2026, despite the negative impact of the Middle East.” Here again—as is now a widespread trend in the luxury sector—the increase stems from full-price sales, which offset the continued decline in the contribution from outlet stores. Leather goods stand out in particular.
Versace: Integration Underway and Results in Line with Expectations
Versace, acquired by Prada last year and currently in the process of integration and relaunch, contributed €143 million to quarterly revenue. “Versace delivered a performance in line with expectations, benefiting from a gradual repositioning toward full-price sales, as well as increased depth and quality of the product offering. The strategic focus remains on retail execution and clienteling activities, alongside the progress of the integration plan at the organizational and process levels,” the press release explains. Regarding Versace, Andrea Guerra added that the focus would be “on strengthening the organization and processes in preparation for the next phase of creative evolution. "Our solid and well-articulated strategy, aimed at the high-end segment on the one hand and at attracting a new clientele on the other, will be decisive in the coming months."
Wholesale sales up sharply, retail sales growing
Regarding distribution channels, the retail network grew by 2% at current rates (+10% at constant rates and +3% organically). Wholesale, which nevertheless represents a residual share of overall business, recorded a 34% jump in sales at current rates (+40% at constant rates, +17% organically).
The Americas drive growth, while Europe slows down
The geographic breakdown of sales favors the Americas, the group’s primary growth driver. The Americas maintained a strong trajectory, up 22% at current exchange rates (34% year-over-year, 15% organic), supported by robust local demand. Both Prada and Miu Miu continued to benefit from organizational strengthening and investments made in previous quarters. Asia-Pacific, the Group’s largest market, also saw significant growth, with a 5% increase at current exchange rates (13% year-over-year, 5% organic). In this region, Miu Miu maintained sustained growth, while Prada recorded further improvements, driven by rigorous execution and positive trends in China, Hong Kong, Macau, and South Korea. Sales are flat in Europe (+2% at constant exchange rates, but down 6% on an organic basis), facing challenging multi-year comparison bases, notably an exceptional first quarter of 2025 (+14%). As previously mentioned, this slowdown is linked to a decline in tourist spending, while local demand experienced a more modest decline. Finally, Japan is suffering from currency effects, which led it to close the quarter at -12% at current exchange rates and +1% at constant exchange rates (down 2% on an organic basis), with local consumption remaining stable against a comparison base which was also very high in the first quarter of 2025.