Company figures

As of 2022, the company operated a combined total of 638 owned and franchised stores worldwide and had a global total of 13,186 employees. The Asia-Pacific and Europe regions account for most of Prada's net sales, followed by Europe. Prada's business ventures include runway shows, manufacturing watches and perfumes, and designing flagship boutiques. However, Prada's largest source of revenue comes from the sale of leather goods such as purses and belts.

Prada in the luxury sphere

Prada is one of the leading brands in the luxury market with a powerful impact that goes beyond the fashion industry. In a ranking that measured the value of luxury brands based on their media impact, Prada came in eight place, with a Media Impact Value (MIV) of over 50 million U.S. dollars. This metric measured a brand's impact across online media, such as content performance on blogs and social media platforms. In Europe, the Prada brand had a similar effect. In both regions, Chanel, Dior and Louis Vuitton were some of the luxury brands with the highest media impact value.

E-commerce enters the luxury sector

According to estimates, younger generations are expected to be the main actors of the luxury goods market by 2025, with millennials accounting for half of the value of the luxury market. There is little doubt that with such big demographic shifts in the consumer base, the luxury shopping experience is bound to move towards a more digital future and cater to the needs and habits of the generations born into the digital world. For many brands that had to shut down their physical stores temporarily amidst the coronavirus (COVID-19) pandemic restrictions, e-commerce sales have already taken off. The Kering Group, which owns the brands Gucci, Saint Lauren, Balenciaga, and Bottega Veneta, doubled its e-commerce sales in 2020 compared to the pre-pandemic figures. Richemont Group, which operates the e-commerce platforms for luxury personal goods like Watchfinder and Yoox Net-a-Porter, reported sustained sales revenue for its online distributors segment in 2020 and 2021.

It is fair to say that online sales of luxury goods are greatly helped by e-commerce platforms and marketplaces where luxury shoppers are offered a coterie of luxury brands. Farfetch is among the popular online marketplaces for luxury goods with more than 10 million active customers in 2020. The UK-based luxury marketplace was among the industry's leading brands based on revenue, ranking side by side with luxury conglomerates like LVMH, Kering, and Richemont. Farfetch’s online popularity placed the platform among the fastest growing luxury retail websites in the United States in 2020.

China: key consumption hub for the global luxury industry

As it stands, North America is the leading market for luxury goods, but China is a dynamic and strong runner-up with a share of 20 percent of the global market and with revenues forecast to reach from around 39 billion U.S. dollars to just over 56 billion U.S. dollars by 2025. While a majority of luxury shopping still takes place in physical stores or store-based overseas locations, various e-commerce channels, such as brand websites and apps, and third-party luxury e-commerce platforms, like Tmall’s luxury pavillion, or miniprograms within WeChat, are relevant to luxury shopping as well. Tmall’s luxury pavillion is particularly popular with younger Chinese consumers. In 2020, an overwhelming majority of the platform’s gross merchandise value for luxury products was down to millennial consumers. Other surveys with affluent consumers also showed that in the Asian region including China, Hong Kong, Japan and Singapore, the use of online channels such as mobile devices were more widespread when purchasing luxury brands and services.

Before COVID-19, the value category was a highlight of the industry, with shareholder returns of 21.1 percent. This changed significantly during the pandemic as customers were forced to shop online; most of the major value brands lacked robust e-commerce platforms to cater to these changing demands.

Meanwhile, several forces have contributed to the luxury category’s extraordinary strength:

Pandemic-affected saving and spending habits. To start, COVID-19 lockdowns pushed more consumer dollars (particularly North American dollars) away from travel and experiences and toward savings and shopping for luxury goods.⁴ During the pandemic, consumers were saving at all-time high rates,⁵ and once restrictions lifted in 2021 and 2022, they actively engaged in “revenge spending” as consumers sought a reward for life on pause.

North American luxury dominance. After decades of dominance by Asian and European business, many luxury brands are seeing their share of market shift to the Americas. US consumers have historically been less interested in the luxury segment than their peers in Asia and Europe, but this seems to be changing. For example, the share of LVMH’s revenue that came from the Americas grew from 24 percent in 2019 to 26 percent in 2021, according to the company’s financial disclosures. Likewise, during the same period, Kering’s US share of revenue grew from 19 percent to 26 percent. This new wave is likely a result of both traditional market strength in the United States creating an increase in wealth and the limited international travel opportunities during COVID-19 that reduced cash-spending options.

More investable and sustainable shopping. Consumers are starting to view luxury goods through a new lens, in terms of both the goods’ attractiveness as long-term financial investments and the appeal of sustainable shopping through high-end resale. This period can rightfully be defined as a new era of luxury shopping, and the primary consumer is a departure from the traditional international shopper. A new profile of mindful luxury shoppers—those who prioritize sustainable shopping, products with long life cycles, and potential investment opportunities—seems to be shifting the landscape and driving increased momentum for the luxury category. (Consider that McKinsey predicts resale segments could grow at more than a 10 percent CAGR in the coming years.)

• A North Star definition phase, headed up by the CDO, to define the vision, priority domains, and key battlegrounds across the value chain. During this phase, the company creates the data strategy, establishes the data team, selects data-architecture tools, and identifies pilot use cases for high-impact, quick-win opportunities in priority domains. This phase typically lasts six to ten weeks.
• The value-creation phase, where the company starts generating value through two or three quick-win use cases. In this phase, the company also migrates data to the new architecture, sets up data governance, and launches training and change-management programs. This phase lasts four to six months.
• Scale, where the transformation is scaled to tens of use cases in parallel, in three- to four-month development cycles, with many rounds of two-week sprints. In this phase, it is critical to tackle the topic of data culture, which is typically the most formidable barrier to scaling digital and analytics transformations. In fact, 33 percent of executives cited culture as the top challenge in meeting their digital and analytics priorities. This phase lasts six to nine months.
• The final phase of data and analytics transformation, when data and analytics are fully embedded within the company value-creation machine. By now, the company will have data capabilities spread across the organization and will have hundreds of use cases in production that deliver value.

Forward-looking brands must do more than look at the overall trends in online shopping. Understanding the differences in consumer behavior between mobile and desktop devices is crucial for eCommerce companies to tailor their strategies effectively. Let's explore some key aspects of this divide:

Device preference

The preference for mobile or desktop shopping varies widely among consumers, depending on the context. Research indicates that almost four-fifths (79%) of smartphone users have made an online purchase with their smartphone within the last six months. Interestingly, 71% of in-store shoppers who use their smartphones for online research feel that they have become even more essential to the value and seamlessness of their in-store experience.

Browsing vs. buying

Another fascinating point is to consider is the consumer's intent in using a mobile device vs. a desktop computer. It appears that mobile devices are often used for browsing and product discovery. On the other hand, customers favor desktops for the actual transaction. In fact, one study found that desktop users had a conversion rate of 4.14% in 2019. This is compared to a conversion rate of 3.36% for tablet users, and 1.53% for smartphone users.

Factors that affect online shopping habits

There could be several factors that explain this discrepancy between mobile and desktop shopping. For instance, the smaller screen size of mobile devices can make it less convenient for consumers to make purchases. Even just the task of filling out lengthy forms. (In fact, research from Dynamic Yield found that 67% of consumers cite the "pages and links being too small" as an impediment to mobile shopping.)

At other times, customers may feel more secure making large purchases on their desktop PC or laptop. Since these devices are often used at their personal residence. As opposed, smartphones are typically used in both public and private settings. 

It seems that while the share of mobile eCommerce continues its steady climb, desktop still holds the edge in terms of conversion rate. Research seems to support this conclusion. As one study found that 85% of online purchases start on one device and are completed on another.

eCommerce companies want to shorten the gap between discovery on a mobile device. Moreover, the actual purchase is as much as possible. In many cases, mobile browsing that doesn't result in a purchase is a wasted opportunity. Therefore, many businesses have invested in frictionless payment options, shop-the-look features, and fast checkout practices to boost mobile conversion rates. These are crucial steps to take in an era where virtually everyone is browsing via their mobile devices.

Impulse buying

Another major factor to consider is the trend of impulse buying. Mobile devices, due to their constant accessibility, generally facilitate impulse buying. However, there are several subtleties in the specific type of impulse buying they promote.

For instance, one scientific study on impulse buying behavior online found that:

"The positive effects of website stimuli and marketing stimuli on consumers' internal reactions exhibit significant variations based on a situational stimulus (i.e., a non-holiday season versus a holiday season). Specifically, consumers react more sensitively to perceived website quality to form both hedonic and utilitarian values during the non-holiday season, while they focus more on prices to judge utilitarian value rather than hedonic value during the holiday season."

Based on this empirical data, it seems that online shoppers (including mobile users) tend to focus more on how a website looks when they're not under pressure to make a purchase. But when they are under pressure (such as during the holiday season), they make impulse purchases based more on price than any other consideration.

Whatever the season, it's apparent that with just a few taps on a smartphone, and within a few short seconds, consumers can and often do commit to a purchase. This "quick-trigger" behavior is further reinforced by the prevalence of social media platforms and targeted advertisements that can influence impulse buying decisions.

Contextual shopping

Context is also key when it comes to understanding what drives customer behavior in terms of mobile vs. desktop usage. Mobile devices and smartphones in particular offer the advantage of "location-agnostic" shopping. Here's why consumers can make purchases no matter where they are. For example, consumers can order groceries while commuting. Also, place a takeout order while waiting in line, or buy concert tickets while taking a break at work.

While desktop devices can't offer that level of convenience, they definitely make it easier on the average user to navigate to and browse websites. Thus, they tend to be the device of choice for consumers who plan to make bigger purchases. For instance, if someone decides to buy a car online, it is much more likely they'll do it from a desktop PC or laptop. This is more convenient than their smartphone.

“Putting quantifiable meaning behind trends has made the world of fashion feel more approachable for me,” Lapuerta says. “I wanted to bring logic and reasoning into something that is inherently subjective.” Her endeavor to translate fashion content into clear, conclusive metrics began in 2019. After watching McQueen, the documentary based on the life and career of Alexander McQueen, the data scientist felt moved to combine her knowledge in computer science and her passion for clothing. Lapuerta began experimenting with image-recognition models to detect recurring silhouettes, colors, and patterns in runway photos and sharing what she found on social media. “At first, it took a lot of throwing stuff at the wall to find out what people are really drawn to,” she shares. “I wanted to see what new, interesting insights I could form on this industry, and I learned that, like me, people want to see a concrete depiction of trends.”

Today, the 25-year-old creator conducts and shares studies on buzzworthy topics such as Taylor Swift’s complete history of Grammy gowns, fashion trends as recession indicators, and even average site-loading times of large luxury brands (Chanel wins for fastest) with her combined 280,000 followers across Instagram and TikTok. She creates engaging memes, graphs, and videos that break down her takeaways clear as day, leaving no room for trend confusion. For example, a pensive photo of Cher Horowitz from Clueless is captioned, “When people r saying denim maxi skirts are in style but u know interest in them has decreased by 20 percent this past month.” In another post, a photo from the ’90s of Kate Moss and Naomi Campbell dancing is captioned, “When people say Chanel bags are a bad investment but u know prices have increased over 660 percent since 1990.”

Of course, a knack for creating shareable content is not Lapuerta’s only secret weapon. Her analysis method involves image recognition and manual tagging in code with the aid of AI recognition models she developed herself. This is what the data analyst uses to determine what’s inarguably in style. (Perhaps to no one’s surprise, Lapuerta graduated from Harvard’s school of engineering.)

The Olympics of Lapuerta’s metrics-driven deep dives is fashion month, and the gold medal is her highly engaged audience. So, what is it about fashion’s current landscape that leads us to crave evidence around what is or isn’t actually trending? According to social media’s most unbiased fashion forecaster, an influx of subjective opinions and hot takes has created a call for black-and-white information.

“There’s nothing wrong with this, but a lot of creators or fashion folks are sharing their opinions online. And when I was starting to become interested in fashion, as someone who feels very nerdy and into computer science, it was hard for me personally to know what is actually going on here,” Lapuerta shares. “One moment maxiskirts are cute, and the next they’re out. But when I turn to data, I can form my own opinion based on facts.”

There’s a limit to what data can tell one about their own taste—personal style can and should be nuanced — but at the very least, it’s a starting point for understanding what’s out there. Lapuerta herself doesn’t base her buying decisions around her findings, but she does incorporate the facts into her understanding of what’s happening in fashion. “It’s not the end-all be-all,” she says of her analysis. “Just because something is trending doesn’t mean everyone should like it or wear it. But it helps to know.”

Lapuerta has tapped into a rare, not yet oversaturated category of fashion content: the objective kind. “People are really interested in the way fashion and larger societal sentiment are intertwined,” the data analyst reports. “When I post about the hemline index, which states that hemlines get longer as the economy falls, people get really excited.” Earlier this year, Lapuerta posted a graph that illustrated the correlation between the S&P 500 and the percentage of miniskirts shown in spring runway collections, accompanied with a caption insinuating that shorter hemlines may be on the horizon. The caption read, “While the latest runway collections predicted a ~28 percent rise in mini skirts for spring 2023, could things be looking up??” Commenters responded, “*buys mini skirt*” and “This account is my bible.”

In addition to backing up fashion theories, @databutmakeitfashion is also in the business of debunking. “There are always hypotheses and guesses about what’s in, and that’s interesting, but it’s not always right,” she says. One of Lapuerta’s top-performing posts of 2023 has been a graph that showed how, according to Google search data, the term quiet luxury rose in popularity by 1,230% between March and April of 2023. However, after running an analysis on more than a thousand looks from 2023 runway collections to track trends pertaining to quiet luxury, Lapuerta was surprised to find that logos, the antithesis of quiet luxury, were trending. “We’ve seen a consistent increase in logos on runways over the past four years,” she reports. “In spring 2023 shows, there was a 7% increase in logos on the runways.”

Evidently runway looks and consumer demand don’t always correlate. By dissecting the data, Lapuerta makes it clear that, similar to how our online echo chambers don’t always reflect what’s trending at large, runway trends aren’t always an accurate representation of what we’re actually wearing. Plus there are levels to this game. A trending item, such as a Chopova Lowena skirt, might become relevant due to its runway presence or commercial demand. But often it’s not until a smaller demographic of aspirational dressers, such as editors or industry icons, adopts the trend that consumers really want to buy it. In other words, a garment may enter our zeitgeists by way of ubiquitousness, but when it comes to what we want to wear, there’s nothing as powerful as who we see wearing it. It’s the Alexa Chung, Regina George, and Olsen twin effect, to name a few original converter culprits.

Beyond the topic of what to wear, Lapuerta’s audience is also looking to her for the facts on fashion ethics. “For instance, brands have talked a lot about reducing leather and fur, and a lot of customers get excited about that,” she says. “But leather was still in an average of 16% of the looks of spring 2023 collections.” Another data point Lapuerta continues to watch is diversity in body size on the runways. “The data shows that there is resistance from many legacy houses to embrace diversity, while newer brands continue to challenge them,” Lapuerta says. According to the creator, running tests to see which brands are following through on sustainability and diversity promises helps her and her audience understand where they want to shop. “Knowledge is power,” Lapuerta says. “And I’m putting knowledge out there so that we can make informed decisions.”

Along with highlighting trends, debunking theories, and shedding light on fashion ethics, Lapuerta has one more purpose behind Data But Make It Fashion—and this one is personal. “I used to think that in order to be a good engineer, I couldn’t be interested in fashion,” she says. “Whether someone is interested in fashion or data analytics, I want to make both feel more approachable.” After just four years of running the numbers, Lapuerta is helping thousands decide what to wear, pulling back the curtain on what’s truly trending, and making two typically intimidating fields feel more friendly—one fashion chart at a time.

This statistic depicts the brand value of the leading 10 most valuable luxury brands worldwide in 2022. In that year, Chanel was the third most valuable luxury brand worldwide with a brand value of about 53 billion U.S. dollars.

Luxury goods

The global luxury goods industry, which includes drinks, fashion, cosmetics, fragrances, watches, jewelry, luggage and handbags, has been on an upward climb for many years. Although the technical term 'luxury good' is independent of the goods' quality, they are generally considered to be goods at the highest end of the market in terms of quality and price. Luxury goods manufacturers meet consumer demand by focusing on brand, aesthetics, quality materials, superior craftsmanship and pricing to transform everyday objects into status symbols. The industry rises and falls with the gross domestic product (GDP), seeing demand climb in times of economic stability and plummeting in unfavorable economic climates. The United States has long been the largest regional market for luxury goods and it was estimated to continue to be the leading personal luxury goods market in 2020, with a value of 55 billion euros.

LVMH (Louis Vuitton Moet Hennessy) was the most valuable luxury brand in the world, with a brand value of about 124.3 billion U.S. dollars in 2022. The LVMH Group's total revenue for the 2021 fiscal year was about 64.2 billion euros. Moët Hennessy Louis Vuitton, more commonly referred to as LVMH Group, is a French luxury goods conglomerate. The company is primarily known for its fashion house, known as Louis Vuitton, named after its founder. The conglomerate operates globally, selling luxury leather goods, handbags, ready-to-wear fashion, and other fashion accessories. Since 1989, the company has been run by Frenchman Bernard Arnault, following the merger of the luxury goods producer with champagne producer Moët & Chandon and cognac manufacturer Hennessy.

New markets and segments are giving the industry growth points. One challenge for luxury companies is to maintain brand equity and cultivate their customer relationships. As luxury expands into more industries, expect a more mature segmented market. As a result, consumers should also become more rational.

Third-quarter sales in the group’s retail stores rose 10 percent, less than half the growth rate of the first-half but still maintaining a double-digit pace on top of record sales last year.

Sales in North America were broadly stable, falling 1 percent in a market where rising interest rates and slower economic growth have provoked steep declines among some rivals.

“In an uncertain geopolitical and economic backdrop that requires us to stay vigilant, we continue to see positive momentum in the business and strong excitement around our brands,” chief executive Andrea Guerra said.

The company’s retail sales jumped by 24% to €3.7 billion EUR ($3.9 billion USD), while its operating profit increased by 59% to €776 million EUR ($821 million USD) — both of which are a result of “high desirability” among consumers for both the Prada and Miu Miu brands. Across categories, the company experienced growth: leather goods climbed 18%; ready-to-wear increased by 27%, and footwear grew by 29% when compared to last year.

Since 2020, when Raf Simons joined Miuccia Prada at the label’s helm as co-creative director, Prada has driven increased demand with re-merchandised stores, a staple lineup of nylon goods and more aggressive usage of its emblematic triangle logos across all categories. Similarly, Miu Miu has found its place among fashion’s top tier, thanks to its signature mini skirts and viral ballet flats, among myriad popular products.

Notably, in Q4 2022, the Prada Group was the only luxury conglomerate to see its two leading brands chart in the top five on the Lyst Index, with Prada ranking first place and Miu Miu taking fourth. To top it off, Lyst also named Miu Miu the “Brand of the Year.”

“Prada Group delivered excellent results in 2022, underpinned by brand momentum, greater client engagement and rigorous strategy execution,” executive director Patrizio Bertelli said in a statement.“The retail channel drove our performance, achieving strong and broad-based organic growth at both Prada and Miu Miu. We performed well across all product categories and geographies, more than offsetting weakness in China due to COVID-19.”

“We continued to develop our sustainability capabilities and activities, ensuring they remained linked to the identities of our brands and relevant to our clients,” he added. “In 2022, we further strengthened our positioning and our organization, and in the current year we will accelerate the execution of our strategy. We intend to stay on a path of steady and sustainable growth as we work towards the full potential of our brands.”

The company reported continued strength across all product categories with leather goods up 18 percent, ready to wear, up 27 percent and footwear up 29 percent.

Gross margin was 78.8 percent of revenues, equal to 3.3 billion euros and adjusted EBIT margin was 20.1 percent of revenues, equal to 845 million euros.

Commenting on the trading results, Prada Group executive director, Patrizio Bertelli said: “Prada Group delivered excellent results in 2022, underpinned by brand momentum, greater client engagement and rigorous strategy execution. The retail channel drove our performance, achieving strong and broad-based organic growth at both Prada and Miu Miu. We performed well across all product categories and geographies, more than offsetting weakness in China due to Covid-19.”

Prada posts growth across core brands and markets

The company’s online sales saw double-digit growth, while penetration remained stable at 7 percent of retail Sales. Prada revenues grew by 25 percent and Miu Miu revenues were up 20 percent with a sharp acceleration in H2, driven by highly successful products, fashion shows and events.

Among geographies, the company said, Asia Pacific declined by 2 percent to 1,232 million euros impacted by multiple lockdowns in China offset by the strong performance in Korea and South-East Asia. The region returned to moderate growth in H2, with sales up 3 percent.

A strong performance in Europe saw growth of 63 percent, sustained by domestic sales and an uptick in tourism throughout the year. The Americas generated growth of 22 percent over the year with a normalisation in H2 due to the increasingly strong comparatives and outbound tourist flows. Japan grew 31 percent, with an acceleration in H2, and the Middle East also increased 23 percent in total.

“I have joined the Prada Group at an exciting time of evolution, and I have found great energy. We will further invest in the desirability of our brands, in the renovation of our retail network and in manufacturing capabilities. In 2023, we expect revenue growth to remain solid and above market average. China has restarted to be an engine of growth; however, in this ever-changing scenario, we will remain vigilant and maintain a disciplined approach to costs and capital allocation,” added Andrea Guerra, Prada Group chief executive officer.

The company’s board of directors plans to propose a dividend distribution of 0.11 euros per share.

Company Summary

PRADA SpA (PRADA), a subsidiary of PRADA Holding BV, is a designer, manufacturer, and distributor of luxury products. The company offers handbags, leather goods, footwear, ready-to-wear apparel and accessories. It markets products under the brands Prada, Miu Miu, Car Shoe, Marchesi 1824, Luna Rossa, and Church's. PRADA sells its merchandise through franchise-operated stores, multi-brand stores, luxury department stores, independent retailers and online retailers. It also operates patisserie and duty-free stores. The company has operations across the Americas, Europe, Africa, the Middle East and Asia-Pacific. PRADA is headquartered in Milan, Italy.

The company reported revenues of (Euro) EUR4,200.7 million for the fiscal year ended December 2022 (FY2022), an increase of 24.8% over FY2021. In FY2022, the company’s operating margin was 18.5%, compared to an operating margin of 14.5% in FY2021. In FY2022, the company recorded a net margin of 11.1%, compared to a net margin of 8.7% in FY2021.

Similarly, Prada Group has been heavily investing in culture since the establishment of Milan’s Fondazione Prada, an art and cultural centre hosting global emerging artists. In 2022, Prada collaborated with Formafantasma over a series of seminars on design and culture hosted at Milan Design Week and M+, a museum in Hong Kong’s West Kowloon Cultural District.

• Ahead of the 2023 FIFA Women’s World Cup, Prada (Italy) partnered with the Chinese Women’s National Football Team. To expand into sports and support youth athletes, it created outfits for the team and launched a series of initiatives set to continue through to the Paris 2024 Olympics

• Prada considers art and culture essential to its foundational values. The Italian luxury group is committed to a partnership with FAI, the country’s National Trust, to safeguard Italy’s artistic heritage, placing consistent investments in initiatives such as artwork restoration

Creating permanent restaurant space for popups provides a rich, holistic brand experience and creates new incentives to stay and linger. Harrods teamed with Prada to launch Prada Caffè at Harrods in London, modelled after Prada's Milan boutique mixed with a 1950s soda shop aesthetics

Prada: in April, the Italian house launched an AI social media campaign showcasing its new fragrance collection. Prada partnered with Berlin-based photographer Johann Besse to capture the bottles, which were inserted into an AI image generation tool with prompts that produced new versions. The shots were presented in an asymmetrical mirror mechanism, showcasing ingredients such as neroli buds.

Dolce & Gabbana is a luxury Italian fashion house founded in a small town cose to Milan in 1985 by the two Italian designers Domenico Dolce and Stefano Gabbana. This timeline illustrates the turrnover of the Italian luxury fashion company Dolce & Gabbana between 2011 and 2021. In 2021, the total turnover of Dolce & Gabbana amounted to over 747 million euros, a decrease of around 125 million euros compared to the previous year.
It is worth to be noticed that Dolce & Gabbana S.r.l. is a listed company part of two macro fashion groups. The first is Top15Moda which indicates the 15 major fashion companies with registered office in Italy in term of revenues. Some are worth to be mentioned as Armani, Dolce & Gabbana, Ferragamo, Max Mara, OTB-Diesel, Tod’s Della Valle, Prada and Valentino FG and Zegna. The second one is Aziende Moda Italia (AMI) which includes the 143 most important companies with registered office i