Prada confirms CEO succession; Miu Miu up 49% as margin holds 22.6%
Bottom Line Impact
Succession clarity plus Miu Miu's outsized growth supports mid-single-digit revenue acceleration and stable 22%+ margins near term, while decisive brand repair at Prada will determine market share gains and preserve brand equity through 2025.
Key Facts
5- Succession: Lorenzo Bertelli confirmed as future Group CEO; elected executive director on 10 Apr 2024; serving as CMO and head of sustainability since 2024.
- H1 revenue: £2.27b, up 9% YoY; retail sales £2.03b, up 10% YoY across all regions.
- Brand split: Prada brand retail sales down 2% YoY; Miu Miu retail sales up 49% YoY.
- Profitability: Adjusted EBITDA £513.29m, up 8% YoY; margin 22.6%, flat vs prior year; net profit £320.11m.
- Balance sheet: Net financial position positive £291.97m after £325.98m dividends and £243.85m investments in H1.
Time Horizons
Key Roles Affected
Executive Summary
Prada has formalized the next phase of leadership with Lorenzo Bertelli designated as future CEO while consolidating marketing and sustainability under his remit from 2024. H1 performance shows resilient group growth and margin stability driven by Miu Miu's 49% retail surge, offsetting a 2% Prada brand decline, setting up a portfolio pivot that requires capital reallocation and brand repair.
Actionable Insights
Immediate Actions (Next 30-90 days)
Formalize a 12-month succession roadmap with defined decision rights, KPIs, and quarterly investor touchpoints led by Lorenzo.
Rationale: Reduces key-man risk, aligns stakeholders, and converts succession signal into execution certainty that supports valuation and talent retention.
Role affected:CEO
Urgency level:immediate
Cut Prada brand underperforming SKUs by 10-15%, focus buys on 3-5 hero families in leather goods, and tighten weeks-of-supply to under 10 for A-tier doors.
Rationale: Improves full-price sell-through, protects gross margin, and rebuilds brand heat while avoiding overstock.
Role affected:Chief Merchandising Officer
Urgency level:immediate
Short-term Actions (6-12 months)
Reallocate 15-20% of H2 global brand marketing to Miu Miu and fund 2-3 hero product drops with tightly managed scarcity.
Rationale: Amplifies a 49% growth vector and sustains heat through high-ROI activations while Prada brand resets its product narrative.
Role affected:CMO
Urgency level:short-term
Shift 20-30% of FY capex toward Miu Miu store upgrades and digital commerce capabilities; link a sustainability-linked credit line to inventory traceability milestones.
Rationale: Targets capital to the highest growth and margin accretive nodes while lowering cost of capital via sustainability performance.
Role affected:CFO
Urgency level:short-term
Risks & Opportunities
Primary Risks
- Execution risk in leadership transition causing decision bottlenecks or talent attrition.
- Prada brand demand softness persisting, pressuring mix and diluting gross margin.
- China and broader Asia volatility impacting high-margin retail traffic.
Primary Opportunities
- Scaling Miu Miu as a structural second growth engine with superior ROI on marketing and capex.
- Sustainability-led differentiation enabling premium pricing and favorable financing terms.
- Omnichannel acceleration to capture Gen-Z demand with higher DTC mix and better data capture.