Prada Group reported strong financial results for 2025, with revenues rising 9 percent to €5.72 billion. The company also detailed its long term strategy to revive Versace following its acquisition in late 2025. While the turnaround may weigh on short term profitability, Prada leadership believes Versace has significant potential within the group portfolio.

Strong revenue growth in 2025

Prada Group ended 2025 with solid financial momentum. The company reported net revenues of €5.72 billion for the year ending December 31, representing a 9 percent increase compared with the previous year on a constant currency basis. The performance extended a streak of five consecutive years of growth for the Italian luxury group, even as the broader luxury market experienced slower expansion.

Gross profit also improved during the year. It rose from €4.34 billion in 2024 to €4.59 billion in 2025, pushing the company’s margin slightly higher from 79.8 percent to 80.3 percent. Leadership attributed the steady profitability to ongoing investments in brand desirability, retail operations, and digital transformation.

Chief executive Andrea Guerra described 2025 as a year of exploration and investment. The company experimented with new technologies such as artificial intelligence while strengthening its storytelling capabilities and retail environments. Prada also expanded into hospitality, opening its first standalone restaurant in Asia, Mi Shang Prada Rong Zhai, located in Shanghai.

Guerra said the company maintained disciplined investment in talent, digital infrastructure, and brand awareness throughout the year. According to him, these initiatives helped sustain growth despite the broader slowdown affecting luxury consumption in some markets.

Miu Miu drives exceptional growth

One of the most notable highlights in the company’s results was the strong performance of Miu Miu. The brand continued the momentum it achieved in 2024, delivering exceptional growth in 2025.

Retail sales at Miu Miu increased 35 percent year over year. The surge significantly outpaced the performance of the flagship Prada brand, whose retail sales declined by 1 percent during the same period. However, Prada showed signs of improvement in the second half of the year and recorded positive results in the fourth quarter.

The strong growth at Miu Miu demonstrates the brand’s increasing influence among younger luxury consumers. Its distinctive aesthetic, strong cultural presence, and successful runway collections have helped it become one of the most dynamic labels within the group’s portfolio.

Prada leadership emphasized that both brands play important but different roles in the group’s strategy. While Prada continues to represent the company’s heritage and core identity, Miu Miu is driving experimentation and attracting new audiences.

Regional performance shows broad demand

Prada Group reported growth across most geographic regions in 2025. Asia Pacific remained the company’s largest market, closely followed by Europe. Sales in Asia Pacific increased 11 percent for the year, reflecting continued demand across several countries in the region.

European sales grew 5 percent, supported by both local consumers and international tourism. The Americas delivered one of the strongest performances, with revenues rising 18 percent due largely to domestic demand in the United States.

Japan recorded a more modest 3 percent growth rate. This result followed a particularly strong year in 2024, which created difficult comparisons. The market was supported by a mix of local customers and tourists returning to the country.

The Middle East also delivered solid results, with sales increasing 15 percent. During the earnings call, Guerra acknowledged the challenges facing employees in the region because of ongoing geopolitical tensions. He indicated that the situation may influence business performance in 2026, particularly if store operations are affected.

Prada Group begins the Versace turnaround

A major development for the company in 2025 was the integration of Versace into the group. Prada completed the acquisition in December 2025 and quickly began outlining plans to reposition the iconic Italian fashion house.

Versace generated €684 million in net revenues in 2025. Prada executives acknowledged that the turnaround effort will likely have a negative effect on the group’s top line and margins in the near term. The consolidation is expected to dilute the group’s EBIT margin in 2026 before improving gradually in the following years.

Lorenzo Bertelli, Prada Group scion and chair of Versace, emphasized that rebuilding the brand will take time. He told investors that the transformation will not happen overnight but expressed confidence in Versace’s long term potential.

Bertelli highlighted several strengths that attracted Prada to the brand. These include strong global awareness, a diverse customer base that differs from Prada and Miu Miu audiences, and a deep legacy in both couture and ready to wear. Versace also maintains strong cultural relevance and brand recognition across multiple product categories.

Leadership changes and creative direction

To guide the brand’s creative future, Versace recently appointed Pieter Mulier as chief creative officer. Mulier will join the house from Alaïa in July 2026 and is expected to present his first Versace collection in early 2027.

The appointment signals a new chapter for the brand’s design direction. Prada leadership believes Mulier’s experience and vision will help refine the label’s identity while maintaining the bold spirit that has defined Versace for decades.

In the meantime, the company will focus on structural improvements across the brand’s operations and product offerings.

Initial pillars of the Versace transformation

The first stage of the turnaround will focus on two main priorities. The first involves reviewing existing collections and product lines to identify areas where quality and structure can be improved.

The second priority addresses distribution and brand positioning. Prada aims to move Versace toward stronger full price sales by reducing reliance on discount channels and markdown practices.

Network optimization will also play a role in the strategy. The company plans to rationalize the off price channel while improving productivity across its retail stores. These initiatives will focus on strengthening retail execution and enhancing the in store experience.

Another important step involves simplifying the brand’s product structure. Chief financial officer Andrea Bonini indicated that Prada intends to discontinue sub brands such as Versace Jeans Couture in order to streamline the portfolio and reinforce the core brand identity.

Prada is also exploring opportunities to integrate Versace’s supply chain with the group’s existing manufacturing network. Greater vertical integration could help improve efficiency, reduce costs, and ensure higher quality standards.

Rebooting Atelier Versace

From 2027 onward, Prada expects the different elements of the turnaround strategy to converge in a more cohesive brand vision. One of the most notable initiatives will be the revival of Atelier Versace, the brand’s couture line.

The couture division will be relaunched under the creative leadership of Pieter Mulier. Bertelli described the reboot as part of a broader effort to reinforce Versace’s luxury positioning and long term desirability.

Special projects linked to the couture line may also help strengthen the brand’s cultural impact and prestige within the fashion industry.

A new chapter for the Prada Group

Despite the challenges associated with integrating Versace, Prada executives remain optimistic about the company’s future. Guerra noted that the group has spent several years upgrading its operations and strengthening its brand portfolio.

Those efforts have produced consistent growth, rising profitability, and improved cash flow. According to Guerra, the company now enters a new phase that combines disciplined execution with long term ambition.

Prada’s leadership emphasized that patience will be necessary as the Versace transformation unfolds. However, they remain confident that agility and efficiency will continue to guide the group’s strategy.

If successful, the revitalization of Versace could add a powerful new dimension to Prada Group’s portfolio, reinforcing its position as one of the most influential players in the global luxury industry.

Written By: Lydia Kelly

Published: 10th March 2026