Yahoo Finance Miu Miu Sees Whopping 89% Growth in First Quarter Sales
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Miu Miu had a great first quarter of 2024: After being named the hottest fashion brand in the world in the latest installment of the Lyst Index, Prada Group reported 89% growth year-over-year in its retail sales for this period.
The luxury conglomerate — which owns Prada, Miu Miu and Church's — released its revenue update for Q1 2024 to investors on Tuesday. It revealed that total net revenue was up 16%, to €1.19 billion ($1.27 billion) this period, compared to the same time last year. While Miu Miu's whopping retail sales growth made it the darling of the moment, the Prada brand is also up 7% year over year. Though the Group doesn't break down these figures by category, it's worth noting that Prada Beauty launched in the U.S. in January.
"Miu Miu's strong performance is a testament to the strategy and disciplined execution implemented over the past years," Group CEO Andrea Guerra said in the report. "We continue to progress in our journey towards retail excellence, enriching our product range and driving customer engagement to nurture our brands' desirability."
These first-quarter numbers speak to the allure of each brand, achieved through Miuccia Prada and Raf Simons' design direction, viral items and buzzy front rows. But the Group is aware of a "more challenging market environment," per chairman and executive director Patrizio Bertelli, who notes that the company will have "to maintain flexibility and agility to respond to constantly evolving industry dynamics while continuing to innovate and invest across our business."
Still, Prada and Miu Miu are well-positioned in a difficult market. In fact, other leading luxury companies have cited a slowdown in Asia as a reason for lagging sales and revenue. (Not only did LVMH and Kering report decreases in revenue, but the latter's numbers were especially dismal, predicting that operating income will tank 40 to 45% in the first half of 2024.) The Prada Group, however, noted how retail sales in the Asia-Pacific region are up 16%. It maintained momentum in Europe as well, increasing 18% year-over-year.
"Sharpness of positioning, creativity and communication will be critical this year," Guerra noted. "While the industry is experiencing new dynamics, we retain our ambition to deliver solid, sustainable and above market growth."
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