Prada net income falls 15% as margins shrink

Prada said first-half net income fell 15% to 327 million euros as margins narrowed, even as revenue rose in what the Milan-based luxury fashion group called a disrupted macroeconomic environment.

The owner of the Prada, Miu Miu and Versace brands said net income across all labels fell from 386 million euros a year earlier. Margins declined to 10.7% from 14.1%.

Net revenues, excluding currency fluctuations, rose 16% in the first half of 2026, while the company's retail channel grew 12%. Prada's flagship brand reported retail sales growth of 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.

Miu Miu revenue rose 2.5% in the half, compared with a 49% rise in the first half of 2025. Prada said Versace, which it acquired last year, was in line with expectations and that the focus for the brand was on improving quality and retail execution.

The results were above FactSet analysts' consensus estimates. Chief Executive Andrea Guerra said the company remained confident in the strength and long-term potential of its brands.