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Prada Group Posts Revenue Rise as Versace Integration Presses Profits

The results signal short-term strain on cash and margins, following a large dividend payout, higher capital spending and plans for a new Milan flagship.

Overview

  • Prada disclosed on July 30 that first-half revenues rose 11% to €3.05 billion while net profit declined about 15% to €327 million, beating FactSet analyst consensus.
  • Adjusted operating profit fell 14.3% to €530 million even as gross profit increased to €2.38 billion, with the company citing one-off integration and currency effects.
  • Regional demand diverged sharply as Americas sales jumped roughly 30% to €572 million and Asia‑Pacific rose about 10% to €922 million while Middle East sales plunged nearly 29% to €98 million.
  • Versace, acquired last December, contributed about €350 million in H1 sales but added integration costs and leadership changes, including the June exit of its CEO and Pieter Mulier joining as creative chief on July 1.
  • After a €403 million dividend and €247 million of capex the group moved from net cash to €693 million of net debt, a shift that could constrain near-term financial flexibility as Prada readies a mid‑September flagship in Milan.