Prada, the designer fashion brand, saw its profits soar 44% higher in 2023, highlighting the luxury sector’s strong performance last year.
Profits at the Italian group jumped to €671 million in the 2023 financial year, driven in part by the “exceptional momentum” of its Miu Miu brand.
Sales at the bag and shoe brand rose 58% year-on-year, Prada revealed.
Patrizio Bertelli, Prada chairman, said: “We are pleased with the strong results achieved in 2023, underpinned by our brands’ desirability.
“The group delivered high-quality growth in revenue and profits, building on outstanding creative momentum, further improving its profitability, and stepping up investments to support the growth of tomorrow.”
Prada’s success highlights the prominence of the luxury sector last year, with LVMH boss Bernard Arnault even briefly becoming the world’s richest man at one point.
However, prospects for 2024 haven’t been as bright, with several luxury companies warning of poor demand in the US and a weaker-than-expected recovery of Chinese shoppers.
Nevertheless, Bertelli is confident that 2024 can be a year filled with success.
He said: “Innovation, dynamism, and flexibility will be even more key to our success in 2024, and I am confident that our reinforced organisation will be able to further evolve the Group.”
Prada is also planning on investing €1 billion over the next five years, with the goal being to bring together all of the company’s divisions, which range from food to art to clothing.