After the Hong Kong stock market closed on 22 October, Hong Kong-listed Italian luxury group Prada released key financial figures for the first nine months and third quarter of fiscal 2026, ended 30 September:
- Third-quarter revenue grew 11% year on year (including VERSACE, which joined the Group late last year), delivering 1% organic growth (excluding VERSACE) in a challenging market environment.
- Net revenue for the first nine months reached EUR4.541 billion, up 15% year on year at constant exchange rates and 4% on an organic basis (excluding VERSACE).
Prada Group Chairman and Executive Director Patrizio Bertelli said in the earnings release that “The environment remains complex and volatile, requiring focus, agility and rigorous execution. Against this backdrop, we continue to build on the foundations of creativity, product excellence, and manufacturing know-how. The recent opening of the production facility in Piancastagnaio in Tuscany, a fully integrated hub dedicated to Leather Goods, reiterates the Group’s industrial vision, rooted in the respect for the territory and the quality of the working environment. ”
During the earnings call, Group Chief Executive Officer Andrea Guerra said he was in Wuhan, China, where he observed that “There is no doubt that the malls are emptier, but we are still achieving positive growth in China and have gained considerable market share. Through a range of initiatives, we have stayed very close to Chinese consumers.”
He described Prada’s Rong Zhai project as a highly successful investment, attracting large numbers of clients and visitors drawn by its reputation. China is also one of Miu Miu’s core markets. Andrea Guerra said the Group was continuing to step up its efforts, particularly in ready-to-wear.
He said that China is currently “a tough place”. However, the Group has seen an improvement in footfall over the past few months. It is too early to draw firm conclusions from this signal, given the large number of Chinese consumers travelling overseas. This year’s holiday was longer than in previous years, with more Chinese tourists visiting France and Italy than usual. The Group therefore needs to observe market performance in November and December.
Regarding the store network in China, he emphasised that the Group is adjusting and streamlining some Prada and Miu Miu stores, explaining that “Particularly in some second- and third-tier cities, we may not need two or three stores. One is enough, and that is what we are doing.” Meanwhile, the Group aims to further strengthen its brands’ presence in the 10-12 key Chinese cities that account for the vast majority of its revenue.
At the close of trading on the day after the results were released, Prada’s share price was up 0.67% from the previous day at HKD38.82. The shares had fallen approximately 16% over the past year, giving the Group a market capitalisation of approximately HKD98.6 billion.
All references to “organic growth” below exclude VERSACE, which was consolidated into the Group’s accounts late last year.
— By Channel
Retail: Revenue for the first nine months of fiscal 2026 rose 11% year on year to EUR3.934 billion, with organic growth of 2% (compared with 9% organic growth in the same period last year). Third-quarter revenue grew 8% year on year and was flat on an organic basis, demonstrating resilience in a challenging environment, supported by brand desirability and effective retail execution;
Wholesale: Revenue for the first nine months rose 35% year on year to EUR428 million, with organic growth of 17%. Third-quarter revenue grew 25% year on year and 12% on an organic basis;
Royalties: Revenue for the first nine months rose 77% year on year to EUR178 million, with organic growth of 16%. Third-quarter revenue grew 83% year on year and 24% on an organic basis.
— By Brand
Prada: The brand delivered a solid performance, with retail sales of EUR2.414 billion for the first nine months, up 2% year on year on an organic basis. Third-quarter organic growth was 1%, supported by positive performances in the Americas and Asia Pacific, including China, while year-on-year trends in Europe and Japan remained steady.
Product innovation and cultural relevance continued to underpin the brand’s desirability, with a balanced and dynamic product mix across categories. The well-received Spring/Summer 2027 womenswear show reflected Prada’s longstanding exploration of the many possibilities of the skirt. New leather goods further enriched the product offering, while fresh creative ideas translated into compelling ready-to-wear and footwear collections.
In September, the brand unveiled its new Prada Galleria flagship in Milan, creating a multi-level destination combining fashion, gastronomy and culture. The space offers an immersive journey into the world of Prada alongside an enhanced, personalised retail experience.
Miu Miu: Retail sales for the first nine months reached EUR1.156 billion, up 1% year on year on an organic basis. Third-quarter sales declined 3% organically, reflecting a high comparison base (+41% in the first nine months of 2025 and +29% in Q3 2025) and an unfavourable geographical revenue mix in the current environment. Excluding the impact of the Middle East, third-quarter performance was broadly stable.
Brand desirability remained high, with strong retail metrics across the board. The acclaimed Spring/Summer 2027 show reimagined the everyday wardrobe, introducing aesthetic elements and major footwear and denim collaborations.
During the reporting period, the brand continued to refine its complete-look offering and increased its visibility through the new travelling Miu Miu Vinyl Club pop-up format. The Miu Miu Shanghai IFC Lounge officially opened, creating an exclusive, intimate space offering immersive, personalised retail services and further deepening the brand’s connection with consumers.
Versace: The brand continued to advance its strategic priorities, contributing EUR441 million in revenue over the first nine months. The current focus is on managing the business transition, laying the foundations for its new creative debut in 2027. The integration of Versace into the Group is progressing as planned.
— By Region (Retail Sales)
Asia Pacific: Overall performance was solid, with retail sales for the first nine months rising 12% year on year to EUR1.344 billion, up 5% on an organic basis, supported by effective retail execution. Third-quarter sales were flat year on year on an organic basis. Footfall in the Chinese Mainland was weak, but this was offset by continued positive momentum elsewhere in the region, particularly in South Korea, Hong Kong and Macau.
Europe: Market trends remained unchanged. Retail sales for the first nine months rose 5% year on year to EUR1.18 billion, declining 3% on an organic basis. Third-quarter trends were broadly in line with the second quarter.
The Americas: Performance was strong, with retail sales for the first nine months rising 33% year on year to EUR851 million, up 13% on an organic basis, driven by robust local demand. Growth slowed in the third quarter against a high comparison base but remained very solid.
Japan: Retail sales for the first nine months recorded positive growth, rising 5% year on year to EUR424 million, up 2% on an organic basis, supported by steady local demand. Third-quarter performance was stable, although growth moderated from the previous quarter against a higher comparison base.
The Middle East: Retail sales for the first nine months totalled EUR136 million, down 23% year on year at constant exchange rates and on an organic basis. Market conditions in the region remained challenging, but local spending drove a sequential improvement in performance.
| Source: Official financial report
| Image Credit: Official financial report, Group website
| Editor: Luxeplace
