Italy’s Prada defied a downturn in the global luxury market in 2025, reporting a 5 percent year-on-year revenue increase to €5.7 billion, according to company results released on Thursday.
The growth was largely fueled by Prada’s Miu Miu label, which targets younger consumers and saw revenues jump 35 percent over the year. In contrast, Prada’s flagship brand recorded a slight one percent decline in sales.
“Prada showed good resilience, proving to be on a solid strategic stance; Miu Miu delivered yet another year of remarkable growth,” chief executive Andrea Guerra said in a statement.
Prada also completed a €1.25 billion acquisition of rival Versace last year. The brand ended 2025 in the red, and Prada expects its margins to be diluted in the coming months. Guerra indicated that he anticipates “progressive improvement from fiscal year 2027 onwards.”
Following the acquisition, Prada’s debt stands at €466 million. The group appointed designer Pieter Mulier to lead the Versace studio and announced “decisive measures” to cut costs.
Prada, which also owns the footwear brands Car Shoe and Church’s, continued to see growth in its main market, the Asia-Pacific region, where sales increased by six percent in 2025.
The slowdown in global luxury consumption, particularly in China, impacted most competitors. France’s LVMH reported a 13 percent drop in net profit to €10.9 billion and a 5 percent decline in revenue to €80.8 billion. Similarly, Kering, owner of Gucci, Yves Saint Laurent, Bottega Veneta, and Balenciaga, saw sales fall 13 percent, with net profit plunging to less than a tenth of the previous year’s level.
Despite the broader market slowdown, Prada’s strategic focus on Miu Miu and its expansion into Asia-Pacific helped the group maintain growth and resilience amid a challenging 2025.
