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Miu Miu’s boom continued in the first quarter, with retail sales rising 89 percent, owner Prada Group said Wednesday. Its flagship Prada brand grew more slowly, with retail sales up 7 percent. Overall, Prada Group net revenues for the first quarter rose 16 percent year-on-year to €1.19 billion ($1.27 billion).
After years of stagnation, Miu Miu has been red hot since 2021, when designer and controlling shareholder Miuccia Prada began to leverage provocative, social-media-friendly runway styling to market a revamped lineup of easy-to-wear products.
The brand’s viral micro-skirt has been followed up by wardrobe staples that put a contemporary spin on relatable references like preppy, collegiate dress or retro office wear, driving surging sales to a new generation of customers. CEO Andrea Guerra saluted Miuccia Prada’s “unbelievable creativity and progressive attitude.”
The brand has successfully relaunched its handbag program as well, shining a fresh spotlight on its flagship matelassé styles as well as a new range of geometric mini-bags.
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Miu Miu’s 89 percent jump is particularly remarkable as it comes atop 58 percent growth last year, and in a market that has slowed dramatically for most players. Sector leader LVMH reported first-quarter sales up 2 percent in its fashion and leather division, while rival Kering’s revenues fell 10 percent.
The Prada brand’s 7 percent retail growth shows it has remained more resilient than rivals despite a market in which consumers seem to have grown weary of logo-heavy merchandising and are showing increased resistance to price hikes. Those are both strategies Prada has leaned heavily into in recent years: a triangle-logoed bucket hat from the brand is now priced $695, compared to $340 in 2019. But it appears that enough customers are still willing to splurge.
In a presentation to analysts and investors Wednesday, Prada Group management said its brands would continue to outperform rivals. Sales so far in April grew at roughly the same rate as the first-quarter, chief financial officer Andrea Bonini said.
Trends supporting growth this year include the return of Chinese clients, who are travelling abroad in significant numbers for the first time since the pandemic. They have particularly boosted sales in Japan, where a weaker yen has attracted deal-hunters, as well as in Western Europe (though sales to Chinese travellers there are still down by 20 to 30 percent on pre-Covid levels). The United States has been more sluggish, but “could be a positive surprise” later in the year, chief executive Andrea Guerra said.
“It’s a different market now than it was the past few years, but we have an opportunity to continue to grow and achieve results above [competitors],” Guerra said. “Our brands are in a positive momentum, and all of the projects we’ve been talking about the last two or three years are progressing.”
Prada has clawed back its exposure to wholesale — helping to drive full-price sales in its own stores — as well as investing in marketing, technology and supply chain. A plan to expand and relocate stores in some fashion capitals is progressing, though unlikely to bear fruit before next year. Store count and retail square footage will be roughly stable this year, but is set to grow by around 15 percent in 2025.
Additional retail space for Miu Miu will be key to solidifying the label’s newfound scale and avoiding an abrupt end to its expansion. Management hopes to transition from the current fashion-driven boom to a more established position in the luxury market.
“To imagine we would continue to grow at this kind of rhythm is unrealistic. But on the other side, to achieve a proper position [for Miu Miu] in the industry is a proper objective,” Guerra said. “We are trying to make the growth structural, to grow solidly across product categories and nationalities, and also to allow Miu Miu to have the proper space.”
The group said it still plans to add a second listing on the Milan bourse eventually, “but this is not a priority at the moment,” according to CFO Bonini.
