By Andrea Figueras
Prada reported an increase in retail sales early in the year, but flagged that the war in the Middle East had weighed on its results, particularly with regard to its Miu Miu brand.
The Italian high-end fashion house said Thursday that first-quarter retail sales rose 10% on year at constant currency to 1.245 billion euros, or $1.45 billion. Excluding the contribution from Versace, retail sales were up 1% compared with the same period a year earlier.
"We are navigating a highly complex environment, marked by persistent uncertainty and rapidly evolving geopolitical dynamics," Chair and Executive Director Patrizio Bertelli said.
The update from Prada echoes comments made earlier this month by sector rivals including Louis Vuitton owner LVMH, Gucci parent Kering and Hermes, who also warned that the war had hurt their results.
Prada said the conflict weighed on both domestic and tourist spending, adding that sales in the Middle East fell 22% over the quarter. The group's Miu Miu label had been particularly hit, it added.
The war in Iran poses a threat to the sector's hopes for an upturn this year after a prolonged slump in demand for luxuries. The conflict has forced some brands to temporarily close stores, while also reducing the number of foreign visitors and preventing affluent Middle Eastern consumers from shopping in Europe.
Prada said that quarterly retail sales in Europe slowed, partly due to lower spending from travelers.
Meanwhile, the company noted that the performance of Versace, which it acquired last year from U.S. conglomerate Capri, was in line with expectations.
"The integration of Versace is progressing well, strengthening organization and processes ahead of the next phase of creative evolution," Chief Executive Andrea Guerra said. The strategy, which focuses on the high-end segment of the product line and aims to attract new clients, will be crucial in the coming months, the CEO added.
The group hopes that Pieter Mulier, whose appointment as Versace's creative chief will take effect on July 1, will breathe new life into the brand after a difficult period marked by revenue decline and losses.
Prada's acquisition of the storied Italian label was seen as a move to enlarge the company's portfolio and customer base at a time when the luxury sector is dominated by conglomerates such as France's LVMH and Kering.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
April 30, 2026 08:03 ET (12:03 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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