PRESS RELEASESTRONG BRAND IDENTITY, CREATIVITY AND DISCIPLINEDEXECUTION DRIVE PRADA GROUP’S POSITIVE RESULTS
Retail Sales +21% YoY and EBIT Margin of 22.0% in HY-23
Milan, 27 July 2023 – The Prada S.p.A. Board of Directors today reviewed andapproved the Consolidated Financial Results for the First Half ended 30 June 2023.
Key highlights (growth percentage at constant currency)•Creative focus, innovation and a clear interpretation
contemporaneity continue to strengthen brand identity and resonance•Net Revenues of €2,232 mln, +20% yoy•Retail Sales of €1,975 mln, +21% yoy, driven by like-for-like full pricesales. Prada +18% yoy and Miu Miu +50% yoy•Rebound in Asia Pacific continued, with Retail Sales +25% yoy; Europe+24%; Americas -1%; Japan +49%; Middle East +14%

•Double-digit growth across all product categories: Leather Goods +12%
yoy, RTW +36%, and Footwear +20%

•Continued profitability improvement with EBIT Margin
notwithstanding higher investments; EBIT of €491 mln•

Solid balance sheet with Net Cash Position of €283 mlnofof22.0%,Patrizio Bertelli, Prada Group Chairman and Executive Director, commented:“The semester ends with solid results for the Prada Group, thanks to the desirability ofits brands and to disciplined execution. Our globally balanced distribution allow us tocapture growth despite ever-evolving industry demand dynamics. We are pleased with
the quality of Prada’s continued growth and with the remarkable performance of Miu
Miu. We will remain vigilant and nimble, ready to deal with different macroeconomic anddemand scenarios that may materialise ahead. Our brands retain vast growth potential;
our strategy is clear, and our reinforced organisation is well equipped to execute.”
Andrea Guerra, Group Chief Executive Officer, added:“Q2 was another positive quarter on top of a solid Q1. Retail growth continued to bedriven by like-for-like full price sales, with Prada remaining on a sound trajectory andMiu Miu reporting a remarkably strong performance, thanks to a strengthened identity
and increasing visibility. The Group’s profitability further increased while we continued
to consolidate our brands’ desirability with higher investments. We are still at thebeginning of our strategic journey: we need to act with a long-term perspective,continuing to invest behind our brands, maintaining maximum focus on retail execution
and productivity. For the current year, we retain our ambition to deliver solid, sustainable
and above-market growth, considering a more challenging comp base in Q3, and some
Covid restrictions during Q4 2022.”

Key figures

Net Revenues

H1-22
€ mln
1,901

H1-23€ mln
2,232

change atreported fx+17%change atconstant fx+20%

Retail Sales

1,678

1,975

+18%

+21%

Wholesale Sales

194210+8%+9%Royalties

2947

+66%

+66%Gross Profit

1,477

1,793

+21%

77.7%

80.3%

331

491

Margin

17.4%

22.0%

EBIT

305

491

Margin

16.0%

22.0%

Group Net Income

188

305

Margin

9.9%

13.7%

Cash Flow from Operations

321

509

Capital Expenditure

97151

Net Operating Working Capital

680

723

Net Financial Position

179

283

MarginEBIT Adjusted

1+49%+61%+62%

Continued focus on brand desirability and client engagement
Prada Menswear FW23 and SS24 as well as Prada Womenswear FW23 fashionshows confirmed excellent reception by all audiences. The highly successful “TheGlass Age” campaign creatively reinterpreted and celebrated the iconic Prada
Galleria bag; the introduction of novelties continued across product categories, withongoing and broad-based success of Prada’s collections. Contributing to thedialogue with growing audiences, in the second quarter, Prada and Adidas unveiledthe "adidas Football for Prada" collection. Throughout the semester the brandrealised a number of successful activations, including dedicated events for theEternal Gold fine jewellery collection, Prada Extends in Bangkok, Prada Mode inTokyo, and the opening of the very impactful Prada Caffè at Harrods.
Miu Miu’s standout performance was supported by the highly successful FW23
fashion show, the launch of the SS23 campaign with exceptional personalities, andcontinued investment to amplify brand awareness to a growing client base. Miu Miu
consolidated formats, like the Miu Miu Women’s Tales as well as Miu Miu Select,continued to foster the relationship with the community on a global scale. The brandstrategy remains focused on reinforcing brand codes, with a constant flow ofcontemporary collections that fuel desirability across all product categories. The“matelassé” leather and its dedicated campaigns resonated strongly, as
demonstrated by the success of Wander and recently launched Arcadie bags.

1EBIT Adjusted excludes Other non-recurring income and expenses.

Adding to the client engagement initiatives of the brands, the Group continued toinvest in the retail network upgrade at pace, with c.70 renovation projects completed
in the semester, instrumental to elevate the client experience in store and toincrease productivity.
The Group ESG journey continues to progress
Prada Group’s focus on vertical integration was reflected in the progress made inbuilding an increasingly responsible business model, throughout the key areas ofsupply chain transparency, raw materials traceability, Scope 3 CO2 emissions
reduction, chemicals management in industrial processes and a wider WaterConservation programme. The Group’s ongoing commitment to the ocean throughthe SEA BEYOND project continues, with the announcement on June 27 of a newenhanced partnership with IOC-UNESCO. Specifically, Prada Group will donate 1%of the proceeds of the Prada Re-Nylon collection to enrich the educational
programme and extend the scope of SEA BEYOND towards two new areas of focus:
support for ocean-related scientific research and humanitarian projects.

Healthy and solid Retail Sales growth at Prada, further acceleration at Miu Miu(growth percentage at constant currency)
The Retail channel continued to be the engine of growth in the semester, with sales up+21% yoy at constant exchange rates, driven by like-for-like full price sales. In thesecond quarter Retail Sales increased by +19%, building on a strong first quarter at+23%.
Compared with the same period of 2022, Retail Sales of the Prada brand in H1-23
increased by +18%; in the second quarter, revenue growth increased by +15%, withmore moderate but solid pace compared to the +21% of the first quarter, on a high basisof comparison, with the exception of China. Miu Miu reported Retail Sales growth of+50% in the semester, with the second quarter in further acceleration at +57% versus
the +42% of the first quarter, an excellent performance supported by the higher exposure
to China and Asia.
At Group level, growth was balanced across Leather Goods (+12%), Ready-To-Wear(+36%), and Footwear (+20%) categories.

Retail Sales by geography

Asia PacificEuropeAmericasJapanMiddle EastRetail Sales

H1-22€ mln590486360
16180
1,678

H1-23€ mln
716
582
361
224
92
1,975

change atreported fx+21%+20%0%+38%+15%+18%change atconstant fx+25%+24%-1%+49%+14%+21%

The Group delivered double-digit growth across all regions, excluding Americas, inthe first six months of 2023.
Asia Pacific saw Retail Sales up +25% in H1-23, thanks to the acceleration inmainland China, Hong Kong and Macau, supported by the low basis of comparisonof 2022, when China was affected by heavy restrictions in April and May, then liftedfrom June.
Europe continued to register elevated growth in the semester, with Retail Sales up+24%; despite the very challenging comparatives, Europe has therefore continued todisplay solid trends, supported by healthy local demand and high levels of tourism.
In the Americas, H1-23 Retail Sales ended at -1% yoy; the North American client
cluster, that has been showing strength for a prolonged period, continued to growthroughout the semester, including in the second quarter.
Japan was the best performing region in the semester, up +49% yoy, benefittingfrom the Group’s recent investments in the retail network and a strengthenedorganisation, successfully capitalising on strong brand appeal, solid domestic
demand and increasing tourism flows.
Middle East also delivered a solid growth performance, up +14% yoy.

For further information:
Prada Group Press Officecorporatepress@prada.com
About Prada Group
Pioneer of a dialogue with contemporary society across diverse cultural spheres and an influential leader in luxury
fashion, Prada Group founds its identity on essential values such creative independence, transformation andsustainable development, offering its brands a shared vision to interpret and express their spirit. The Group owns
some of the world’s most prestigious luxury brands, Prada, Miu Miu, Church's, Car Shoe, the historic Pasticceria
Marchesi and Luna Rossa, and works constantly to enhance their value by increasing their visibility and appeal.
The Group designs, manufactures and distributes ready-to-wear collections, leather goods and footwear in morethan 70 countries through a network of 603 stores (at June 30, 2023) as well as e-commerce channels, selected
e-tailers and department stores around the world. The Group, which also operates in the eyewear and fragrances
sector through licensing agreements, has 24 owned factories and more than 13,700 employees. For more
information, please visit www.pradagroup.com.