MILAN – The year 2025 was one of strategic evolution for the Prada Group through the acquisition of the Versace brand and it closed with sound results.
In the 12 months ended Dec. 31, revenues rose 5 percent to 5.72 billion euros compared with 5.43 billion euros in 2024. The Versace deal was completed on Dec. 2, and excluding its contribution of 65 million euros since then, the group’s organic sales growth at constant currency exchange of 8 percent. This represented 20 consecutive quarters of growth for the Italian luxury group.
“We are pleased to report another solid set of results in 2025, with healthy growth and sound profitability, achieved in a challenging macroeconomic and industry context,” said Patrizio Bertelli, Prada Group chairman and executive director. “The desirability of our brands remains rooted in creativity, consistency and authenticity. Our manufacturing platform is a key strength, supporting quality, craftsmanship and the operational agility required by the market.”
Net profit rose 2 percent to 852 million euros compared with 839 million euros in 2024.
Adjusted operating profit, including the dilutive impact of Versace, rose 3.1 percent to 1.32 billion euros, representing 23.2 percent on sales.
Gross profit reached 4.6 billion euros compared with 4.33 billion euros in 2024.
“Meticulous execution, built on constant attention to routines across functions, continued to underpin the progress of our brands,” said group chief executive officer Andrea Guerra.
In 2025, the retail channel was up 5 percent to 5.1 billion euros. Organic sales rose 8.2 percent, driven by like-for-like, full price sales. In the fourth quarter, organic sales were up 5.6 percent against challenging comps in the previous year, up 18 percent. At constant currency, organic fourth quarter retail sales gained 5.6 percent.
“Over the year, Prada showed good resilience, proving to be on a solid strategic stance; Miu Miu delivered yet another year of remarkable growth,” said Guerra.
Miu Miu Spring 2026 Ready-to-Wear Collection at Paris Fashion Week
Giovanni GIannoni/WWD
At constant currency, the Prada brand’s retail sales decreased 1 percent and inched up 0.4 percent in the fourth quarter.
Among the key new openings over the year, Prada cited new hospitality venues in Shanghai and Singapore, a store in New York and Prada Alexandra House in Hong Kong.
Miu Miu retail sales climbed 35 percent at constant currency, against exceptionally high comparatives last year, up 93 percent. In the fourth quarter, retail sales rose 20 percent, compared with an 84 percent increase in the same period in 2024.
Stores in Wuhan, London and Tokyo were among the most significant projects unveiled over the period.
In a statement, Bertelli addressed the acquisition of Versace, which, he said, “marks a significant step in the strategic evolution of the group, adding a highly distinctive and complementary brand to our portfolio and contributing to our long-term growth ambitions.”
As reported, Bertelli’s son Lorenzo was named executive chairman of Versace; Emmanuel Gintzburger was confirmed as the brand’s CEO, and Pieter Mulier was appointed chief creative officer, effective July 1.
“With the acquisition of Versace, we welcomed a brand with incredible heritage and awareness; this new journey will demand respect, care and patience,” said Guerra. “Looking ahead, we remain committed to the ambition to deliver above-market growth for the group. With respect to profitability, ex Versace, we continue to aim for organic margin progression.” Guerra anticipated that Versace’s consolidation will drive a dilutive effect on the group’s operating profit margin in 2026, “with a target to resume progressive improvement” from the full year 2027.
“Alongside the creative transition, gradual channel repositioning will be a key strategic priority, with specific focus on supporting high-quality, full-price sales and distribution, and the sharing of retail routines and best practices to elevate in-store execution. The integration process is well underway across functions, with full separation from Capri Holdings expected to be completed in the second half of 2026,” Prada said in the statement.
As it plans to improve productivity, the group “will continue to progress the integration of relevant functions, alongside the convergence of Prada Group’s and Versace’s digital transformation journeys.”
Versace closed 2025 with revenues of 684 million euros and, in 2026, “the creative leadership transition and the initial repositioning steps are expected to translate into some degree of topline contraction,” continued the statement. “The group has taken decisive action on operating expenses, generating initial synergies and savings that will be selectively reinvested in strategic areas.” Versace incurred operating losses last year, and “it is expected to continue incurring operating losses of not dissimilar magnitude” in 2026.
In 2025, the group’s retail sales in the Asia Pacific region delivered a good progression over the year, closing up 6 percent at 1.7 billion euros. Organically, they grew 10 percent at constant currency.
Europe retail sales gained 2 percent reaching 1.56 billion euros, and rose 4 percent organically. The company reported a softer trend in the second half, with local consumption facing strong comp growth and lower tourist flows.
The Americas registered consistent double-digit growth throughout the year, closing up 12 percent to 932 million euros, supported by local demand. Organically, the region was up 15 percent.
At current exchange rates, Japan was flat at 656 million euros, but was up 3 percent at organically, against exceptional high tourism last year. The company reported a slight improvement in the fourth quarter on the previous quarter, driven by both local and tourists’ spending.
The Middle East was up 11 percent to 251 million euros. Organic growth was 15 percent.
Capital expenditures totaled 617 million euros compared with 493 million euros in 2024.
As of Dec. 31, net debt stood at 466 million euros compared with a net positive financial position of 600 million euros in 2024.
