Prada S.p.A.·Consumer Cyclical

Prada delivered healthy revenue growth and robust margins despite luxury sector headwinds, supporting a Buy rating. Some pockets of concern are visible, though. The Prada brand and the company's big European market both saw weakness. However, the numbers don't raise any alarms yet, and 2026 could well be another good year for the company. The stock is also supported by attractive market multiples.

Prada S.p.A. (PRDSY) Q4 2025 Earnings Call Transcript

Prada plans to increase full-price sales and cut secondary lines at its recently acquired Versace brand, whose first collection under new creative director Pieter Mulier in expected only in 2027.

Italian luxury group Prada reported on Thursday an 8% rise in 2025 organic revenues, driven by strong growth at its smaller label Miu Miu, although margins were dented by the acquisition of Versace, which will continue to weigh on profitability this year.

The fashion house said Versace's consolidation would dilute its profit margin this year, but that would improve it from 2027.

Prada's autumn/winter show in Milan on Thursday included embroidered satin dresses, sheer skirts and wool sweaters, while the front row presence of Mark Zuckerberg fuelled speculation about a potential smart glasses partnership.
Prada S.p.A., together with its subsidiaries, designs, produces, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, and Africa. It offers its products under the Prada, Miu Miu, Church's, and Car Shoe brands. The company also provides eyewear and fragrances under licensing agreements, as well as operates in the food sector under the Marchesi 1824 brand. As of December 31, 2021, it had 635 directly operated stores. The company also sells its products through a network of approximately 26 franchise operated stores; multi-brand stores; luxury department stores; independent retailers; and online retailers. In addition, it engages in the event management and real estate business, as well as operates duty-free stores. The company was founded in 1913 and is headquartered in Milan, Italy. Prada S.p.A. is a subsidiary of Prada Holding S.p.A.
Consumer Cyclical
Luxury Goods
15,216
2011-08-11
0.86