As Slingback Pumps Become A New Fashion Trend, Prada Sales Jump

Prada SpA's sales increased due to strong demand for its brushed leather loafers and slingback pumps.

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At constant exchange rates, the group's net revenue in 2022 increased to €4.2 billion ($4.44 billion), up 21% at constant exchange rates, the company said in a statement on Thursday. Analysts had predicted revenue of €4.01 billion for the company. The demand in Europe was particularly strong during this period. There was a more than two-thirds increase in earnings adjusted for interest and taxes.

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Prada was ranked the most searched-for brand and product on the shopping app Lyst in the fourth quarter, according to the Lyst index, which tracks the most searched-for brands and products across the application. Another brand in the group, Miu Miu, came in fourth for the period of the study. The Prada brushed leather pumps, which sell for almost €900, were among the most searched products during the period, according to Lyst, which tracks fashion searches.

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There has been a recent restructuring of the fashion house's governance, with Miuccia Prada, granddaughter of the label's founder, Patrizio Bertelli stepping down as co-CEOs, and Andrea Guerra taking on the role of director.

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Both Prada and Bertelli remain actively involved in the day-to-day operations of the group as executive directors. Along with Raf Simons, Prada is also one of the designers behind the namesake label. Additionally, she is in charge of the creative direction at Miu Miu. Miu Miu recently debuted its autumn/winter ready-to-wear collection in Paris, and Emma Corrin, who played Princess Diana in The Crown, appeared on the runway.

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“Despite weakness in China due to Covid-19, we managed to perform well across all product categories and geographies, more than compensating for the weakness in China," Bertelli stated in the statement. The company's CEO, Guerra, said during a conference call with analysts that the company expects growth this year to remain "solid and above market average," adding that 2023 has started off well for the company and that the company had an "excellent" Chinese New Year. 

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Approximately a third of the company's revenue comes from the Asia-Pacific region, and about the same proportion comes from Europe. Guerra said in a recent interview that one of his main priorities this year is to boost the productivity of the stores.

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Prada's release comes amidst a mixed set of results from other luxury brands, including Hermes International, which saw strong demand in China in the last quarter, and Kering SA, which saw lackluster sales for the company's biggest brand, Gucci, in the last quarter as well.

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As luxury players branch out into a new product area that is helping boost the perception of exclusivity in the eyes of consumers, luxury players like Prada launched a line of fine jewelry made from certified recycled gold in October.

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During the first half of this year, the shares of Prada have risen by 23%. Andrea Bonini, Chief Financial Officer of the group, said he had no news on a secondary listing in Milan. Efforts will now be made by the Italian company to publish quarterly trading updates, with the first quarterly revenue numbers expected on May 11.