Prada SpA (PRDSF) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Miu Miu's Stellar ...

In This Article:

  • Net Revenues: EUR3.8 billion in the first nine months, up 18% year-over-year at constant exchange rates.

  • Retail Sales Growth: Up 18% in the third quarter.

  • Wholesale Growth: Up 9% year-over-year, 11% in the third quarter.

  • Royalties Growth: Up 16% in the quarter.

  • Exchange Rate Impact: Negative impact of around 3% points on group revenue.

  • Prada Brand Growth: 4% growth in the first nine months, 2% in the third quarter.

  • Miu Miu Brand Growth: 97% growth in the first nine months, 105% in the third quarter.

  • Asia Pacific Sales Growth: 12% in the first nine months, stable at 12% in Q3.

  • Europe Sales Growth: 18% in the first nine months and Q3.

  • Americas Sales Growth: 8% in the first nine months, 10% in Q3.

  • Japan Sales Growth: 53% in the first nine months, 48% in Q3.

  • Middle East Sales Growth: 24% in the first nine months, further acceleration in Q3.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Prada SpA (PRDSF) reported a strong 18% increase in net revenues for the first nine months of 2024, driven by high-quality retail growth.

  • Miu Miu brand showed exceptional performance with a 97% growth in the nine months, including a 105% increase in Q3, indicating strong brand momentum.

  • The Asia Pacific region, despite challenges, maintained a double-digit growth rate of 12% in Q3, showcasing resilience in a key market.

  • Prada SpA (PRDSF) has successfully expanded its brand equity through innovative partnerships, such as the development of a spacesuit for NASA, enhancing its cultural positioning.

  • The company is strategically expanding retail space for Miu Miu, indicating confidence in continued growth and market demand.

Negative Points

  • Prada brand experienced a slight deceleration in growth, particularly in China, which remains a complicated market with uncertain near-term improvements.

  • Exchange rates negatively impacted group revenue by approximately 3% points during the first nine months, affecting overall financial performance.

  • The North American market showed only slight improvement, reflecting a challenging environment with pre-election uncertainties.

  • Despite strong growth, Miu Miu's absolute numbers remain relatively small, indicating a need for continued strategic focus to sustain momentum.

  • The wholesale channel's performance was primarily driven by timing effects, suggesting potential volatility and lack of consistent growth in this segment.

Q & A Highlights

Q: Can you explain the nationality performance in the quarter, particularly for Prada and Miu Miu? A: For Prada, the Chinese consumer performance was low single-digit positive year-to-date, but Q3 was slightly negative. North America was slightly positive, Europe was mid to high single-digit positive, and Japan maintained a good trend. Miu Miu showed strong growth across all clusters, driven by consistent brand identity and creativity.