Key Takeaways:
Prada Group reported a 14 percent increase in first-quarter revenue at constant exchange rates, but sales in the Middle East plunged by more than a fifth as regional conflict depressed demand from locals and tourists.
“The group delivered another quarter of growth in a disrupted environment and against the most challenging comparison base of the year,” CEO Andrea Guerra said in a statement. He added that the Prada brand showed further improvement in full-price sales, while Miu Miu “remained highly desirable.”
The results highlight a sharp regional divergence for the Milan-based luxury group. While strong demand in the Americas powered growth, the 22 percent sales drop in the Middle East made it the worst-performing region. The company joins other luxury houses, including LVMH and Kering, in reporting a significant negative impact from the Iran war, which has weighed on traffic and tourist flows across both the Middle East and Europe.
At the brand level, growth moderated against very strong prior-year results. The main Prada label grew 0.4 percent at constant currency, matching its pace from the fourth quarter of 2025. Miu Miu, which has been a key engine of growth, saw its sales rise 2.4 percent, a marked slowdown from the 60 percent surge it recorded in the same period a year ago.
The €143 million net revenue contribution from Versace, which came under Prada ownership in December, met the group's internal targets for its first full quarter.
Chairman Patrizio Bertelli said the group is navigating a "highly complex environment, marked by persistent uncertainty and rapidly evolving geopolitical dynamics." The company did not disclose guidance for the upcoming quarter.
The sales slowdown in the Middle East is a significant headwind for Prada and the luxury sector. Investors will be watching for signs of whether the weakness in the region is a temporary disruption or a more prolonged downturn that could continue to drag on global results.
This article is for informational purposes only and does not constitute investment advice.
