Prada (1913) Q4 2025 earnings summary

Executive summary

• Achieved fifth consecutive year of group revenue growth, with net revenues of €5.7 billion, up 9% year-over-year at constant FX and 8% organically, despite industry headwinds and FX pressures.

• Retail sales grew 8% organically to €5.1 billion, with Miu Miu up 35% and Prada brand showing sequential improvement, turning positive in Q4.

• Completed Versace acquisition in December for $1,395 million, consolidating one month of results; Versace generated €680–684 million in full-year revenues and added 220 stores.

• Maintained strong cash generation and a healthy balance sheet, closing with net debt of €466 million after significant CapEx and acquisition outflows.

• Net income increased 2% to €852 million, with a proposed dividend of €0.166 per share.

Financial highlights

• EBIT adjusted reached €1.32 billion (23.2% margin), steady pre-Versace and improved on a cost/currency basis year-over-year.

• Gross margin rose to 80.3%, up 50 bps, aided by operating leverage and channel mix.

• CapEx totaled €617 million, focused on retail, industrial, and digital investments.

• Cash flow from operations was €1,674 million; net financial deficit at €466 million.

• Dividend per share proposed at €0.166, totaling €425 million, with a stable 50% payout ratio.

Outlook and guidance

• Expect continued solid organic growth for Prada and Miu Miu in 2026, with Miu Miu targeting double-digit growth if conditions allow.

• Versace to undergo a transition year in 2026, with a mid- to high-single digit top-line contraction and continued operating losses expected due to channel repositioning and discounting discipline.

• Group EBIT margin to remain steady excluding Versace; Versace to dilute margin in 2026, with improvement targeted from 2027.

• FX headwinds anticipated to persist in 2026, with lower hedging benefits.

• Group aims for above-market growth and continued investment in digital and sustainability initiatives.