Prada: Double-Digit Growth in 2024 and Potential Takeover of Versace

The year 2024 has been particularly encouraging for Prada, which has seen its results steadily improve over the past two years. The group recorded a turnover of 5.43 billion euros, an increase of 15% compared to the previous year and 39% compared to 2022. Its network of own-brand boutiques remains a key growth driver, accounting for 89% of its annual revenues, up 18% in the last quarter alone. The group has been proving to be more robust and profitable over time, posting a net profit of 1.2 billion euros.

While Prada remains the driving force of the group with a turnover of 3.56 billion euros for the past year (+4% compared to the previous year), Miu Miu has seen an excellent increase of 93% in sales over one year and has passed the billion euro mark for the first time.

The Italian luxury group, led by Miuccia Prada and her husband Patrizio Bertelli, seems to have been spared by the slowdown in the Chinese market. In the Asia-Pacific region, sales totaled 1.6 billion euros, up 13% on the previous year, with a rather reassuring final quarter (+16% on the previous quarter). The increase in sales on the Japanese market is even more impressive, with a 46% increase over the year. Europe continues to perform double-digit growth, while the Middle East, which represents 5% of the market share, is showing its potential (+26% sales in one year), stimulated by local consumption and tourist spending.

In addition to the annual results unveiled on Tuesday, Prada has been attracting a lot of attention recently. The group is the target of persistent rumors concerning a potential takeover of Versace (from the Capri Holdings group), leaving the press and financiers on tenterhooks. Prada's earnings statement does not mention a possible agreement for the acquisition of Versace, but the Italian group had a net cash position of 600 million euros at the end of December, which could help finance a possible acquisition.

The conclusion of an agreement between the Milanese group and American Capri Holdings seems increasingly concrete, to the point that the group's share price jumped 8.7% before the stock market opened on Monday morning. According to Bloomberg News, the bid, worth 1.5 billion euros, is said to have the support of Lorenzo Bertelli, the eldest son of Miuccia Prada, and Patrizio Bertelli, the group's marketing director. Such a takeover would enable Versace, which has suffered losses over the last nine months of 2024, to get the wheels of the machine turning again in the long term and to strengthen Italian influence in the face of the French luxury giants that dominate the luxury sector. Although Versace's recovery could take several years, this acquisition would allow Prada to expand its current clientele, favoring the brand's minimalist style, to customers with more daring tastes.

For the future, the Italian group, which has become a major player in the face of the French luxury giants, is counting on increasing Prada's market share and consolidating its Miu Miu brand. It remains to be seen whether Versace will finally get involved and enable the group to break new performance records in the years to come.