Prada SpA (PRP) Q4 2025 Earnings Report

The call presented a predominantly positive operational and financial picture: solid group revenue and retail growth, strong outperformance from Miu Miu, steady adjusted profitability and improved working capital, accompanied by strategic investments in digital, stores and sustainability. Key near‑term challenges include FX headwinds, Prada's modest decline (now improving), selective wholesale disruption, and the expected dilutive, transitional impact from the newly acquired Versace business as it is repositioned. Management emphasized discipline, margin protection (ex‑Versace), and a patient, phased plan for Versace and store/channel optimization.

Management said the group is targeting continued solid, sustainable organic growth for Prada, Miu Miu and the Group in 2026 despite meaningful FX headwinds similar to 2025 (FY25 FX drag ~380bps), and that—excluding Versace—they expect ongoing organic margin progression and the ability to deliver a steady EBIT margin provided reported top‑line growth stays in the mid‑single‑digit range; Versace (full‑year pro‑forma revenues ~€680m, one month consolidated in 2025) will be a transition year with a mid‑single‑digit revenue contraction at constant FX (likely high‑single‑digit at reported FX), gross margin expected to be relatively stable (duties caveat), and an EBIT loss in 2026 targeted to be a limited “two‑digit” figure while initial synergies and selective reinvestment support a progressive improvement from 2027; management also flagged CapEx should start to decline as a percentage of sales (FY25 CapEx €617m, €535m ex‑real estate), marketing will rise slightly as a percent of sales, and efficiency gains in labor, rent and G&A are expected to help offset pressures.