Prada Earnings Hit by Versace Integration, Global Slowdown

Revenue rises 11% as luxury group navigates Versace integration and weaker global demand

Luxury fashion group Prada reported a 15% decline in net profit for the first half of 2026, citing the integration of newly acquired Versace and a challenging global economic environment.

The Milan-based company posted a net profit of 327 million euros ($377 million), while total revenue increased by 11% to 3.0 billion euros, outperforming analyst expectations despite a broader slowdown in the luxury goods sector.

Prada, which also owns Miu Miu, described its financial performance as "solid" but acknowledged that growth opportunities are becoming more limited amid global economic uncertainty.

Chief Executive Andrea Guerra said there was no consistent growth trend across global markets, although the company continues to see significant long-term opportunities.

"We remain confident in the strength of our brands and their long-term potential," Guerra said.

The company's flagship Prada brand recorded retail sales growth of 3.3% in the first quarter and 6.3% in the second quarter, supported by stronger demand in the Americas, Japan and the Asia-Pacific region.

However, Guerra said the conflict in the Middle East reduced the brand's second-quarter growth by approximately one percentage point.

Sales at Miu Miu rose 2.5% during the six-month period, compared with exceptionally strong growth of 49% in the first half of 2025. The brand was more heavily affected by regional tensions, with the Middle East conflict reducing growth by around three percentage points, according to the company.

Prada said the performance of Versace, acquired last year, met expectations as the company continues to focus on improving product quality and retail operations.

Looking ahead, Prada announced a major milestone for the brand with the opening of a new flagship store in Galleria Vittorio Emanuele II in mid-September.

The new location will combine luxury retail, art, culture, dining and office spaces within Milan's historic shopping arcade, where Prada opened its first boutique in 1913, reinforcing the brand's long-term investment strategy despite ongoing market challenges.