Prada Group’s organic sales grew 3% year-on-year in the first quarter of 2026, ended March 31, to €1.43 billion. This excludes any contribution from newly acquired Versace, which was consolidated into the group at the end of 2025. Including Versace, group revenues rose 14% on a constant currency basis.

“We are certainly living through a prolonged, challenging, and unique period for our business, for the industry, and for the world,” Prada Group CEO Andrea Guerra said on Thursday’s earnings call. He reminded investors that Q1 was the group’s toughest quarter in terms of comparables, having witnessed 13% revenue growth in Q1 2025. “I think that this was a very challenging quarter, considering the comps and what is happening in the world.”

He highlighted that the industry is “navigating a phase of significant creativity transformation across several brands”, as the collections of competitor houses with new creative directors enter the market, from Dior to Chanel, propelled by “huge” marketing investments. While this creative renewal is making it harder for Prada and Miu Miu to stand out, Guerra said the group is maintaining its usual approach, rather than reacting to the competition.

Miu Miu’s growth streak is beginning to normalize. Revenues were up 2.4% against a tough comparison basis of 60% in the same period last year, with growth balanced across product categories. “In the past five years, we have seen 20% revenue growth in the first year and 20% in the second year, followed by 58%, 93%, and 35% growth — so the bar is very high,” said Guerra. “We are progressing in line with our plans, simplifying our business model from several perspectives, but particularly in terms of sales channels and discounting. The trajectory so far is in line with our expectations.”

The group highlighted headwinds from the war in the Middle East, which had a particular impact on Miu Miu, due to higher exposure in the region. Sales in Europe were also soft for the brand, partially due to a reduction in Middle Eastern tourists. Meanwhile, the Americas grew significantly and Asia-Pacific sales remained solid.

Sales at the Prada brand grew 0.4%, with improvements in the Americas, Mainland China, Hong Kong, and Macau. Strong performance in full-price sales was partially offset by a planned reduction in outlet exposure. Prada had a negative start to the year, with the first two weeks of January experiencing soft demand, but Guerra said performance has caught up, led respectively by leather goods, ready-to-wear, and footwear.

Versace performed in line with expectations, as net revenues rose to €143 million, the company said (it did not share specific growth figures). The brand has benefited from a repositioning toward full-price higher-quality sales, as well as a deeper product offer. The company’s focus has been on retail execution and clienteling efforts, alongside integrating the brand into the group.

For Prada Group as a whole, sales in Asia-Pacific were up 5% on an organic constant basis. In Europe, sales were down 6%; the Americas grew 15%, driven by strong local demand; and sales in Japan were down 2%. In the Middle East, sales were down 22%, due to softer domestic and tourist spending amid the ongoing conflict.

Retail sales for the group were up 1%, wholesale sales were up 17%, and royalties were up 15%.

“We’re staying firmly on our strategic path,” Guerra told investors. “The rules of the games of this new world are very clear to us: a constant split of commitments between high-end and our entry-price offering to attract new consumers to our brands; strengthening the organization; hospitality standards; and new store infrastructures. Whatever the world is offering us, whatever the industry is offering us, we are committed to our group’s ambition objectives as we work toward initiating a new and sustained phase of growth.”