Prada results underscore weaker luxury demand

Commenting on Prada’s H1 2025 results, Robyn Duffy, Consumer Markets Senior Analyst at RSM UK, said:

“Prada’s half-year results reflect the pressures faced by the global luxury sector, with group revenue rising 9%, but missing analyst expectations. The 2% decline in Prada brand sales underlines the challenges brands are encountering in sustaining demand amid a more price-sensitive and cautious consumer environment.

“Macroeconomic headwinds and escalating trade tensions have dented appetite for luxury goods, particularly in Asia and Europe where sales were weaker due to lower tourist spending. The company’s own characterisation of the backdrop as ‘somewhat unprecedented’ echoes wider sentiment across the sector.

“There are, however, bright spots. Miu Miu continues to shine, with retail sales up 49%, cementing its status as a high-growth label with strong appeal among younger demographics. Prada also reported better-than-expected growth in the Middle East and the Americas - two regions that are proving more resilient to the global slowdown.

“The recent departure of the Prada brand’s CEO and the company’s landmark acquisition of Versace signal a period of strategic repositioning. Bringing Versace into the fold adds a bold, distinctive label to Prada’s portfolio and could strengthen the group’s competitive edge in a market that is ripe for consolidation.

“With other luxury leaders like Hermès and LVMH also showing early signs of stabilisation, the second half of the year will be pivotal. Success for Prada will depend on its ability to reinvigorate its flagship brand, integrate its new acquisition, and respond dynamically to a rapidly shifting geopolitical and consumer landscape.”

authors:robyn-duffy