Italy’s Prada Group announced on March 9 net revenues for the year 2022 surged 21 percent to EUR 4.2 billion (USD 4.48 billion), with retail sales climbing 24 percent to EUR 3.7 billion, despite a single-digit decline in the luxury group’s Asia-Pacific market.
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Asia-Pacific (excluding Japan) declined by 2 percent year-over-year to EUR 1.2 billion, impacted by multiple lockdowns in China. This was offset by the strong performance in Korea and Southeast Asia. The region returned to moderate growth in the second-half, with sales up 3 percent. Meanwhile, Japan sales grew 31 percent, with an acceleration in the second half of the year.
By category, Prada said it saw continued strength across all products categories: leather goods up 18 percent, ready-to-wear up 27 percent, and footwear up 29 percent.
“Prada Group delivered excellent results in 2022, underpinned by brand momentum, greater client engagement and rigorous strategy execution. The retail channel drove our performance, achieving strong and broad-based organic growth at both Prada and Miu Miu,” said Patrizio Bertelli, executive director.
“We performed well across all product categories and geographies, more than offsetting weakness in China due to Covid-19. We continued to develop our sustainability capabilities and activities, ensuring they remained linked to the identities of our brands and relevant to our clients. The recent changes to our governance structure mark a fundamental evolution for the Group. In 2022, we further strengthened our positioning and our organisation, and in the current year we will accelerate the execution of our strategy. We intend to stay on a path of steady and sustainable growth as we work towards the full potential of our brands.”
Looking ahead, the company said it expects revenue growth to remain solid and above market average in 2023.
“China has restarted to be an engine of growth; however, in this ever-changing scenario, we will remain vigilant and maintain a disciplined approach to costs and capital allocation,” said Andrea Guerra, who joined as group chief executive officer, late last year.
“We will further invest in the desirability of our brands, in the renovation of our retail network and in manufacturing capabilities. Execution will remain critical in the coming years, and we shall continue to build retail excellence, developing more frequent and stronger connections with our clients.”