Prada group navigates turbulence, versace acquisition fuels 14% revenue surge
Prada Group’s organic sales ticked upwards 3% year-on-year in the first quarter of 2026, reaching €1.43 billion, excluding the recently absorbed Versace. However, a more compelling narrative emerged—a 14% rise on a constant currency basis, bolstered significantly by the luxury giant’s acquisition of Versace at the close of 2025.
A challenging quarter amidst shifting winds
CEO Andrea Guerra acknowledged a “prolonged, challenging, and unique period” for the group, citing the Q1 results as the toughest comparables they’ve faced. “This was a very challenging quarter, considering the comps and what is happening in the world,” he stated, referencing a 13% revenue growth in Q1 2025. The industry, he explained, is currently undergoing a significant creative transformation, spurred by fresh leadership at houses like Dior and Chanel – investments of ‘huge’ proportions – pushing collections into the market.
Creative renewal and strategic resilience
Despite this increased competition, Prada Group is prioritizing its established strategy, resisting reactive maneuvers. Miu Miu’s growth, previously exhibiting exponential increases, is normalizing, climbing 2.4% against a steep 60% comparison from the same period last year, demonstrating stability across product categories. Guerra highlighted a deliberate simplification of the business model, particularly regarding sales channels and discounting – a move designed to align with projected outcomes.
Regional shifts and brand performance
While the Middle East experienced a concerning 22% sales decline due to ongoing conflict and reduced tourist spending, particularly in Europe, Americas saw a robust 15% growth, fueled by strong local demand. Asia-Pacific remained a solid performer, with sales up 5% organically. Prada itself recorded a modest 0.4% increase, driven by improvements in the Americas, Mainland China, Hong Kong, and Macau – though a planned reduction in outlet exposure impacted full-price sales performance. Versace, meanwhile, delivered net revenues of €143 million, exceeding expectations thanks to a repositioning towards higher-quality, full-price sales and a broadened product offering.
Looking ahead: commitment to strategic trajectory
The group is firmly committed to its strategic path, focusing on a balanced approach between high-end offerings and accessible entry points to attract new consumers. Investments in organizational strength, retail standards, and store infrastructure are paramount. Guerra concluded, “Whatever the world is offering us, whatever the industry is offering us, we are committed to our group’s ambition objectives as we work toward initiating a new and sustained phase of growth.””