Prada’s CEO indicated on Tuesday the Italian style group was at the very least taking a look at potential mergers and acquisitions following reviews linking it with doable offers for fellow luxurious manufacturers Versace and Jimmy Choo.
Talking after Prada, which has defied a slowdown in luxurious demand to outperform lots of its friends, reported a broadly anticipated 21% enhance in working revenue final 12 months, Andrea Guerra gave no particulars of potential tie-ups however recommended it was open to alternatives.
“On one facet we’re targeted on our manufacturers. On the opposite facet … when issues come round, you’ll have a look at them,” Guerra mentioned, when requested in regards to the group’s funding technique on a post-earnings name.
A supply advised Reuters final month that Prada, managed by designer Miuccia Prada and her husband Patrizio Bertelli, has been given entry to Versace’s monetary knowledge.
Bloomberg Information reported on Sunday that Prada was shifting nearer to a deal after agreeing a value of practically 1.5 billion euros ($1.6 billion) for the enterprise based by the late Gianni Versace within the Nineteen Seventies, the place his sister Donatella has been the artistic head for greater than 20 years.
Italian newspaper Corriere della Sera reported on Tuesday that Prada is within the acquisition of each Jimmy Choo and Versace from present proprietor Capri Holdings (CPRI.N) for a complete outlay of between 1.5 billion euros and a pair of billion euros.
The group’s Chief Monetary Officer Andrea Bonini had earlier mentioned it didn’t touch upon rumours when requested in regards to the group’s potential curiosity in Versace and Jimmy Choo.
GROWTH MAINTAINED
Prada, which is listed in Hong Kong, reported a 17% enhance in internet revenues in 2024 to five.4 billion euros ($5.7 billion), matching analysts’ expectations, based on knowledge from LSEG.
The group had a internet money place of 600 million euros on the finish of December, which may assist to fund a possible acquisition.
Revenues grew by double figures throughout all areas, except for the Americas, which reported 9% progress due to an enchancment within the second half of the 12 months.
The Asia Pacific area noticed an excellent efficiency over the 12 months, with 13% progress, with an enchancment within the final quarter throughout all essential areas.
Retail gross sales, which account for a lot of the whole gross sales, rose 18% in 2024, thanks primarily to the smaller Miu Miu model, which posted 93% progress over the 12 months. Development at Prada’s essential model was extra average, round 4% year-on-year.
“For the 12 months forward, we retain our ambition to ship strong, sustainable, and above-market progress,” Guerra mentioned within the earnings assertion. ($1 = 0.9485 euros)