(Bloomberg) -- Prada SpA sales jumped as the Italian fashion group continued to see strong growth amid a wider slowdown in the luxury industry.
Net revenue in the first half grew 17% at constant exchange rates, Prada said in a statement Tuesday. That was in line with analyst estimates.
Prada has been outperforming its high-end fashion rivals thanks to the success of its products among Gen-Z consumers and extraordinary growth rates at sister label Miu Miu, where retail sales jumped 95% in the second quarter.
During the period, Miu Miu and Prada were among the top three “hottest” names in a ranking compiled by Lyst Index, which tracks searches and social media mentions for brands and products.
In the ranking, Lyst also highlighted a Prada ad campaign featuring actress Scarlett Johansson, which has drawn more than 6 million YouTube views.
Miu Miu now represents just under a quarter of total retail sales at the group, with Prada making up three quarters.
Prada’s Japan retail sales jumped 65% in the second quarter helped by strong tourism flows. The country has been a favorite destination for Chinese customers taking advantage of the weak yen to pick up pricey goods during visits to the country. Asia Pacific, which includes the crucial China market, grew 8% during the period.
In a call with analysts, Chief Executive Officer Andrea Guerra said demand from customers in China has become more difficult in the past month although their consumption outside China has become “easier.”
Guerra also said although there’s been a global slowdown for the past 18 months, the group’s labels are gaining market share. Prada hopes “to gain some market share in an industry which I don’t think will see big positive evolutions in the next six to nine months,” he added.
The results Tuesday mark a stark contrast with a mostly weak earnings season for luxury brands, pointing to a clear slowdown in demand.
Hermès International SCA has recently outperformed industry leader LVMH Moët Hennessy Louis Vuitton SE as well as Gucci owner Kering SA, in a sign that the wealthiest consumers haven’t cut back as much as so-called aspirational clients, who are more likely to curb spending amid inflation worries.
Shares of Hong Kong-listed Prada have gained about 20% so far this year.
--With assistance from Antonio Vanuzzo.
(Updates with CEO outlook in ninth paragraph.)
©2024 Bloomberg L.P.
