MILAN (Reuters) -Net revenues at Italian luxury group Prada rose 12.5% at constant exchange rates in the first quarter, slightly above analysts expectations, thanks to a 60% jump in retail sales at its smaller brand Miu Miu.
The group, which this month struck a $1.38 billion deal to buy smaller rival Versace from Capri Holdings, has been outperforming most of its peers in a challenging environment for the sector.
Prada’s net revenues rose to 1.34 billion euros ($1.52 billion), the group said on Wednesday, while a Visible Alpha consensus expected them to increase to 1.33 billion euros.
Retail sales at the group’s main and eponymous brand Prada were flat in the first quarter.
“The group had a positive start to the year. Prada showed strong resilience, against the most challenging quarterly comparison of 2024,” said Chief Executive Andrea Guerra in the statement.
“The comparison basis will ease slightly in the second half of the year but we expect the backdrop to remain complex,” he added.
Retail sales – which account for roughly 90% of the group’s overall revenues – rose in all geographic areas, including the Americas “despite increased volatility during the period, supported by local demand”.
Earlier in April Kering’s first-quarter sales showed a 14% annual decline, worse than expected by analysts, with a 25% drop at its Gucci brand. LVMH’s first-quarter revenue also undershot expectations.
($1 = 0.8790 euros)
(Reporting by Elisa Anzolin, Editing by Gianluca Semeraro and Keith Weir)
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