By Elisa Anzolin
MILAN (Reuters) -Net revenues at Italian luxury group Prada (OTC:PRDSY) rose 12.5% at constant exchange rates in the first quarter, thanks to a 60% jump in retail sales at its smaller brand Miu Miu, defying a slowdown in luxury goods demand.
The group, which this month struck a $1.38 billion deal to buy smaller rival Versace from Capri Holdings (NYSE:CPRI), has been outperforming most of its peers. French luxury groups LVMH and Kering (EPA:PRTP) both posted declining sales in the first three months of the year.
Prada’s net revenues rose to 1.34 billion euros ($1.52 billion), the group said on Wednesday, beating a Visible Alpha consensus of an increase to 1.33 billion euros.
Retail sales at the group’s main and eponymous brand Prada were flat in the first quarter.
Miu Miu, the brand created by designer Miuccia Prada in the early 90s, now accounts for 31% of the total revenues from 22% a year ago.
"The group had a positive start to the year. Prada showed strong resilience, against the most challenging quarterly comparison of 2024," said Chief Executive Andrea Guerra in the statement.
"The comparison basis will ease slightly in the second half of the year but we expect the backdrop to remain complex," he added.
Retail sales - which account for roughly 90% of the group’s overall revenues - rose in all geographic areas, including the Americas "despite increased volatility during the period, supported by local demand".
Sales in North America increased in the first quarter, but the weaker dollar and recent uncertainty may be more visible going forward, Prada’s CEO told analysts on a conference call.
The group will decide on the size of its price increases in the coming months, considering the strengthening of the euro and potential US tariffs, he added.
"But you know, the (tariffs) impact that matters the most is harder to quantify .. It’s the one on consumer confidence and, on the long term, on the US economy", Prada’s CFO Andrea Bonini added.
($1 = 0.8790 euros)