Key points for investors:
- Financial performance: Group net revenues of €5.7bn in FY25 (+9% at constant FX, +8% organic), marking the fifth consecutive year of growth. Retail sales were the main driver (€5.1bn, +8% organic). EBIT adjusted was €1.32bn with a 23.2% margin (includes one month of Versace). Net income was €852m (+2% YoY).
- Brand dynamics: Miu Miu delivered very strong growth (retail sales +35% to €1.6bn) and continues to be a growth engine. Prada showed resilience, finishing FY25 at -1% but with sequential improvement through H2 and a positive Q4. Church’s is on a positive trajectory.
- Versace acquisition and plan: Versace was acquired and consolidated from Dec 2 (one month contribution; FY25 pro forma revenues ~€680m). 2026 is positioned as a transition year—channel repositioning toward full price, product quality improvements, reduction of sub-brands and outlet/discount discipline. Management expects a mid-single-digit top-line contraction for Versace at constant FX in 2026 (likely high single-digit at reported FX) and aims to limit the FY26 EBIT loss to a double-digit million amount, with margin improvement targeted from 2027 onward.
- Capital allocation and balance sheet: FY25 CapEx was €617m (€535m ex real estate). Net debt closed at €466m after €1.2bn cash out for Versace, ~€620m CapEx cash out, and €420m dividends. Board proposed dividend of €0.166 per share (~€425m total), payout ~50%.
- Margins and costs: Gross margin improved +50 bps to 8.3% (operational leverage and channel mix). Excluding Versace and FX effects, adjusted EBIT margin was steady or modestly improved. Management is investing disproportionately in desirability, stores, digital/AI and people while pursuing efficiencies across G&A, labor and rent.
- Regional / channel notes: Asia Pacific and Americas grew strongly (APAC +11% organic; Americas +18% / +15% organic). Wholesale growth was selective (+3% organic). Middle East exposure is material (~5% of sales) with some operational disruption but mixed country-level impacts.
- Inventory and working capital: Inventory control improved (incidence on net sales down from 15% to 14%) and net working capital performance progressed.
- Strategic focus: Continued investment in creativity, hospitality, digital/AI and sustainability (Scope 1/2 SBT achievement noted). Versace integration will leverage Prada Group platforms (supply chain, IT) while keeping client-facing verticals independent.
- Guidance tone: No formal numeric guidance given for brands overall; management flagged H1 2026 comps are very difficult (especially for Miu Miu) and emphasized a cautious / measured approach. Miu Miu could still deliver double-digit growth if conditions permit, but the company is taking a conservative stance for H1 given high comps. FX headwinds are expected to persist in 2026.
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