Prada profit falls 15% as luxury growth slows

Prada reported a 15% fall in first-half net profit on Thursday as the Milan-based luxury fashion group integrated Versace and warned that growth opportunities were harder to find in a disrupted global environment.

The owner of the Prada, Miu Miu and Versace brands said net profit fell to 327 million euros. Reported revenue rose 11% to 3.0 billion euros, while net revenues excluding currency fluctuations rose 16%. Margins fell to 10.7% from 14.1%.

The profit figure beat the analyst consensus forecast established by FactSet.

Chief Executive Andrea Guerra told analysts there was “no obvious growth trend across the world”, although he said there were still “huge opportunities” for the company. “While the environment remains disrupted, we are confident in the strength of our brands and their long-term potential,” Guerra said in a statement.

At the Prada flagship brand, retail sales rose 3.3% in the first quarter and 6.3% in the second quarter, helped by improvements in the Americas, Japan and the Asia-Pacific region. Guerra said the war in the Middle East reduced second-quarter growth at the brand by one percentage point.

Miu Miu revenue rose 2.5% in the half year, compared with a 49% rise in the first half of 2025. Guerra said tensions in the Middle East curbed Miu Miu's growth by about three percentage points, and said the brand had to adapt to “normalized growth”.

Prada said Versace, which it acquired last year, performed in line with expectations and that the focus for the brand was on improving quality and retail execution.

Guerra also said Prada planned to open a new flagship store in Milan's Galleria Vittorio Emanuele II in mid-September, combining retail areas with lounge areas and offices.