Prada sees solid revenue growth for 2023 after beating expectations last year

MILAN (Reuters) -Italy's Prada said on Thursday it expects revenue growth to outpace rivals this year, after sales exceeded analyst expectations in 2022 thanks to a strong performance in Europe.

The luxury group's adjusted operating profit stood at 20.1% of its sales last year, achieving its medium term target of 20% of total sales the group gave in November 2021.

"In 2023, we expect revenue growth to remain solid and above market average," Prada's new Chief Executive Andrea Guerra said in the statement, adding that China had started again to be "an engine of growth".

Last year net revenues rose 21% at constant exchange rates to 4.2 billion euros ($4.4 billion), while analysts expected an increase to 4.04 billion euros according to Refinitiv data.

Prada said net sales grew 63% in Europe with a strong performance across the region, sustained by local demand and an upturn in tourism throughout the year. Revenue growth in the Americas stood at 22% with a "normalisation" in the second half of last year.

The growth in Asia Pacific was hit by the lockdowns in China, but the strong performance in South Korea and South East Asia helped to contain the decline.

Former Luxottica chief Guerra was appointed CEO at the end of January, taking the place of Patrizio Bertelli and Miuccia Prada in what is seen as a likely transition to the next generation of the founding family.

(Reporting by Elisa Anzolin and Claudia CristoferiEditing by Keith Weir)