Good afternoon everyone, and thank you for joining the Prada Group's first quarter 2026 revenue update. With me today is our Group CEO, Andrea Guerra.

As always, we will start with the presentation and then move to Q&A. Before we start, please be reminded that during today's call we may discuss forward-looking statements, which are subject to risks, uncertainties, and factors beyond our control, and the actual outcome and returns may differ materially from such statements.

Please refer to the disclaimers included on slide two of our presentation. With that, I will hand over to Andrea Guerra.

Hello everyone. Nice meeting you all.

We met a couple of months ago, and I would say that the world is constantly giving us new surprises, and we are certainly living through a prolonged, challenging, and unique period for our business, for the industry, and for the world. Having said so, I think that Q1 was our toughest quarter in terms of comparables.

I always would love to remind that Q1 2025 was plus 13% on 2024. We are really pleased to report another organic positive quarter for both Prada and Miu Miu.

I think that this was a very challenging quarter considering the comps, considering what is happening in the world, and considering the fact that basically 50% of creative directors of major brands change, and this was the first season of their products in the market. Middle East is an issue.

As I always remind everyone, is first of all a territory full of great our people, great stakeholders, great allies in the business, and we would love to see it as fast as we can back to great beauty. The impact on Q1, always keep in mind that basically it was the worst moment, but only basically one month was approximately 150 basis points on our growth.

A little bit less on Prada, around 100 basis points, much more on Miu Miu, close to 250 basis points. This is just the underlying and the borders of the conversation of today.

Prada, solid. We said it two months ago.

It will be a solid year where underlying performance is stronger than what we report, but this is fine. We have taken further steps to reduce our exposure to outlets, and as a result, our full-price growth is above, well above the reported break-even level that you see today.

This will become more visible as we move through 2026. In the first four months of the year, Prada experienced, I would say, a negative start during the first 15 days of January.

As you all remember, we had a great holidays period, and maybe clients took a little bit of a rest. Then performance steadily turned positive and has continued to improve solidly up to today.

Women better than men, and men catching up. We recorded with Prada a well-above-average growth in both North and South America.

We talked about this region in length, and I think that we are really taking back our correct market share, and hopefully the journey will be still long. We had an above-average performance in Greater China and Korea.

Again, I would repeat the same thing I said in Americas. I think that our fair market share is higher than what we have today, and so happy.

Even in Japan, we had a better performance. Europe was slightly below average.

Our home market has delivered strong comparables for over a decade. However, some stores in secondary cities have been affected in recent months by decline in tourist spending.

We will be back. On Miu Miu, let me start saying that the past five years we have seen a plus 20% on the first year in terms of revenue growth, plus 20% on the second revenue growth year, then we had a plus 58%, then we had a plus 93%, and in 2025, we reached another plus 35%.

It was not just a kind of bonfire, but has been five years of constant great growth of Miu Miu. The bar is now high.

We are in the ballpark of €1.7, €1.8 billion annually, and we delivered a 2%, which would have been very close to the 5% that we had in mind initially. We have grown well in all places: Americas, where we still have a small footprint, really a long journey yet; a solid performance in Asia, Greater China, Korea; and again, in Europe, we were slightly lower than what we expected.

My reasoning is we are a little bit newer in Europe compared to other regions in the world with Miu Miu, we are more affected by lower tourism expenditure in Europe. I think we are building our solid foundations with our fantastic stores in Milan, Paris, and London, and I think that we will be stronger in the future.

I think that Miu Miu has successfully avoided a lot of brand exposures mistakes, excessive store expansion, or entering too many product categories. The brand ranks among the top in desirability, and we will continue to pursue our long-term growth trajectory without any kind of compromise.

Just to give you an idea of how healthy the brand is, if we sum up outlet and wholesale in Miu Miu, basically we don't reach the 12-13% of the total sales of the brand. Turning to Versace, I don't think there is a lot to be added compared to what we discussed two months ago.

We are progressing in line with our plans, simplifying business model from many different several perspectives, particularly in terms of sales channels and discounting. The trajectory so far is in line with our expectation.

Revenue and EBIT is in line with what we expected so far after the first four months. Q3 will be the quarter in which we will be more challenged because we are not doing any kind of show, but we're getting ready for the beginning of the great journey in 2027.

Having said this, I will come back at the end, but I will give now the word to Andrea.

Thank you. Starting with net revenues by channel, the group recorded net revenues of €1.43 billion in the first quarter of the year, up 14% at constant FX, plus 3% organic against Q1 '25.

Over the period, exchange rates had a significant negative impact of 740 basis points. At retail level, sales reached €1.24 billion, up 10% at constant FX, plus 1% organic, driven by full-price sales and against double-digit comps of 13% in Q1 '25.

The conflict in the Middle East, as Andrea mentioned, had a negative impact of approximately 1.5 percentage points on the organic performance for the period. Wholesale was up 40%, plus 17% organic, sustained by the restart of shipments to strategic partner Saks Global and by duty-free channel performance.

Positive trends on royalties as well, up 84% at constant FX, plus 15% organic, supported by both eyewear and fragrances. Turning to the next slide, retail sales by brand.

Prada closed the quarter with retail sales up 0.4% in line with Q4. This result came thanks to stronger underlying trends considering the impact of Middle East and indeed despite that another sequential improvement in full-price sales, partially offset by further reduction of the contribution from outlets.

Worth calling out the Americas and Asia Pacific, which deliver further quarter-on-quarter improvement over the period. Miu Miu remained highly desirable, continuing to grow at normalized pace with retail sales up 2.4% over the period against the toughest comparison of the plus 60%.

The performance reflects 2.5 percentage points negative impact from Middle East resulting from higher exposure of the brand to the region vis-a-vis Prada. Finally, Versace retail performance over the quarter was in line with expectations, contributing in excess of €100 million in retail sales.

Moving to the next slide, retail sales by geography. Asia Pacific continued to show strength, growing at plus 13% at constant FX, plus 5% organic.

Miu Miu continued to exhibit robust growth. Prada showed further progression quarter on quarter, supported by solid execution and positive trends across mainland China, Hong Kong, Macau, and Korea.

Performance in Europe was up 2%, down 6% organic, driven by a more pronounced contraction in travelers' spending and a more modest decline in local consumption. Such performance reflects a challenging basis with multi-year growth, including a Q1 '25 at plus 14%.

I would add that we've seen encouraging signs recently in terms of traveler spending. The Americas remained buoyant, up 34% constant FX, plus 15% organic, supported by strong local demand.

Both Prada and Miu Miu continued to reap the benefits of the investments we've made in the network, but most importantly in the teams over the past quarters, and we continue to see meaningful opportunities ahead. Japan proved resilient, with local consumption remaining stable against a very positive Q1 '25.

Retail sales in the region were up 1% at constant FX and down 2% on an organic basis. Finally, on Middle East, the conflict weighed on both domestic and tourist spending as the region was down 22% over the quarter, both at constant FX and organic.

The impact may be even more material in Q2 if it ends up impacting the whole quarter compared to the one-month impact of Q1, obviously. With this, Andrea will take over for some final remarks.

Thanks Andrea. Here we are.

I'm happy with this start of the year. With the acceleration we are observing, especially in the last couple of months and especially on Prada.

We remain confident as our brands continue to demonstrate strong desirability. At the same time, we're navigating a phase of significant creative transformation across several brands.

Many new collections have been entering the market, and huge investments have been made. On the other side, we're staying firmly on our strategic path.

I think that the rules of the games of this new world are very clear to us. A constant and total unique split of commitment between high-end, and we have been strengthening organization, product offer, hospitality standards, and new store infrastructures.

When I say split of commitments, on the other side, I think focus on our entry-price offering with the mission to attract new consumers to our brands. I think that this is very clear, and this is what we are doing today.

I think that whatever the world is offering us, whatever our specific industry is offering us, we are committed to our group ambitious objectives as we work towards initiating a new and sustained phase of growth. Grazie, and if you have comments or questions, here we are to answer them.

Grazie.

Yeah. Good afternoon.

Thank you for taking my question. Andrea Guerra, I guess.

You spoke quite fast, just wanted to clarify to make sure I understood what you said. Did I understand that the last two months, March, April have been a bit better than January and February?

If that's the case, is that excluding trends in the Middle East? Or if you could just clarify, that would be helpful.

Thank you so much.

Let me say that I remove from any kind of conversation the Middle East effect that I've given you as a general effect that we will see also during the next six months. What we have seen in March and April is a constant improvement and happy about it.

Got it. Then, Miu Miu, on the last call you had actually told us that you were expecting a relatively soft start to the year, again that was provided.

Still the deceleration is quite steep because I think it's the first time in years that you have single digit and you're increasing your selling space. Your like-for-like, I guess, must have turned negative.

In a nutshell, if you exclude the Middle East, what kind of surprised you in terms of the nationalities? It's not totally clear to me.

It looks like obviously Europe was soft as well for Miu Miu, but where was the deceleration the steepest in terms of the brand?

Europe. You said it.

It's basically, if I look to comparisons, if I look to relative terms, if I look to our growth rates in Americas, Asia, and all the rest, Italy and France are the two places where we declined a little bit more than what we expected.

Got it. To what extent are you confident that things could reaccelerate, is it gradual, is it in terms of for the Miu Miu brand during the course of the year?

I think that, first of all, in terms of comps, things become easier, especially on the second half, especially on certain product categories. We had been seeing a slowdown in tourism in Europe from, let's say, mid-second quarter onwards.

I am still positive. Obviously, when you have everything doing positive except a couple of countries, I think this is still valid, and then we need to be successful.

Okay. Understood.

Thank you.

Yes. Hi.

Good afternoon. My first question is about the Middle East.

Some of your peers have provided the indication of the performance for the month of March. Would it be possible to have an indication about that and or has it been improving for the month of April?

Finally, what is the exposure of Miu Miu to the Middle East, please? Thank you.

I think we have given all the numbers that we feel to give you. On Middle East, you have always to consider three effects.

On Middle East, there is a touristic effect in the Middle East, which is slightly balanced by the fact that Middle Easterns are spending more money in their local countries. On the other side, you also have to consider that main three airports of Middle East have been slowing down, even Asian tourism in Europe has been a little bit declining.

The numbers we have given, the effect on Miu Miu, it will be in the region of the 250 basis points.

Thank you.

This is Middle East, obviously.

Yes, good afternoon. Thank you for taking my two questions.

The first one regards the exposure to travel and retail. Can you remind us the weight of this segment on your total revenues?

Hi, Oriana. Not a number we disclose.

Would expect it to be not dissimilar from the rest of the sector.

Thank you. My second question is on the direct-to-consumer gross profile in the quarter.

If you can quantify the perimeter effect for Prada and for Miu Miu?

I'm not sure I understand the question. Sorry.

Yes, regarding the organic growth of the retail for Prada and Miu Miu, can you tell us the perimeter effect, the impact of the perimeter effect? Oh,

space, new openings. That's what you—

Yes, yes.

Understood. Sorry.

Understood. For Prada, we can consider the performance like-for-like.

For Miu Miu, there is indeed a contribution from new openings helping performance. What we see in like-for-like store is that there's a very very good number of them that are steady, and there are a few with exceptional performance and productivity in 2025, which are retracing a bit.

Won't be a surprise that, as Andrea already said, they are in Europe, particularly in Italy and in France. Having said that, their KPIs remain extremely good.

Understood. Thank you very much.

Next question, please.

Hi. Thanks for taking my question.

Chris Gao from CLSA. Firstly may I specify with you regarding the China cluster trends and also other major clusters?

Basically how are these Japanese, South Korean, and also other major clusters like Americans doing? Can we specify a little bit on that just to make sure we understand the full picture?

Understand when you comment on regional performance, you comment a little bit. Just want to specify.

For Chinese cluster, do you still see the positive growth like you saw previously? How is the trends 2Q to date?

How about other clusters 2Q to date trends? Thank you.

This is my first question.

Hi, Chris. Andrea Bonini.

It's positive with reference to the Chinese cluster that you asked about specifically. It's positive for Prada.

It's positive for Miu Miu. Therefore, it's positive at group level.

As we said, it's solid. When we look at the clusters from the comments we already made, I believe you can infer that the softness was with reference to Europe.

In Europe, of course you have a European component and you have then a tourist, traveler component. The traveler component, tourist component is the one that was impacted the most in Q1 by also the events we know, but also when we look at the European cluster was softer.

The rest, as we already said, very very solid with the exception of Middle East, of course.

Right, right. Thank you.

This is very helpful. The second question is regarding the growth drivers.

Some other luxury peers actually commented on some sequential improvement noted on the new consumer recruitment. I just want to understand more regarding the current growth you have been seeing on Miu Miu and also on Chinese.

Are you also seeing the similar trend or actually you are seeing still more balanced growth between new consumer acquisition and the existing customers? Thank you.

I think Miu Miu is still have a good pace. Had its own history and trajectory and today's reality in China, as you were asking.

Looking to Prada, we have seen since June, July last year sequential improvement on all KPIs. We have seen it slightly in the first months, some up and downs, and we have seen it some more vigorous evolution between pre-Chinese New Year, after Chinese New Year, and the last couple of months.

Right. Thank you.

Thank you very much. The last quick one is can specify more about pricing and mix contribution for Prada, Miu Miu brand.

Thank you very much.

Yeah. As I was saying at the last, I think that we are having a kind of two businesses in one.

On one side, we're seeing volumes in the entry-price segments. On the other side, we're seeing extremely great value on high-value transactions.

I think that all of this at the end is giving a kind of an average, but inside the average there is two very big differences.

Okay. Thank you very much.

Pleasure. Next question, please.

Oh yes, thank you very much, and good afternoon. I have three or four very quick ones, I'll ask them one by one if okay.

Can you perhaps tell us how much stronger the full-price sales growth was at Prada compared to that plus 0.4% that you reported for the brand? That would be the first one, please.

Won't give more than what we said. It's, as Andrea said, is a solid number.

All righty. Then I guess, Andrea, specifically during your prep remarks that there was almost a impromptu addition of seeing encouraging signs in travel spend recently in Europe.

Can you perhaps expand a little bit on that? Because it felt a little bit surprising.

Just wanted to check whether I got the right end of that specific stick.

It's green shoots that we've seen now and then. I think we mentioned it before that we saw a very positive impact, for example, in Italy, in Milan, in the period of the Winter Olympics.

What I was referring to is that recently, very recently, I think we've seen not just in Italy, but more broadly in different parts of Europe some positive trends that are encouraging. As always, I think it's already quite complicated to read trends into quarterly results.

I think it's even more difficult when we want to read too much into monthly or biweekly trends. Nonetheless, considering even since the start of the year the bad news geopolitically, macroeconomically, and so on have been significant.

Let's also start looking at the green shoots when we see them.

Got it. Just quickly following on Miu Miu, it sounds like you are comfortable with the idea that you might have an acceleration in the second half of the year especially.

Can I just ask, do you sense that Q1 was the trough for brand delivery specifically on organic growth?

I would love to be a magician and being able to really answer your question. What I said is what I repeat.

In terms of comps, there is a better-off second half. In terms of desirability of the brand, we're still at the maximum.

The team is enthusiastic and great. I think that new products insertions are all great.

Let's go and battle it and fight for it, and let's see what happens.

Great. Thank you.

I guess one last one, sorry, bear with me. You talked about a lot of newness efforts elsewhere in the industry and, I presume, having to cope with marketing budgets being elevated in other brands.

Have you responded? Have you stepped up efforts from your own perspective?

Or have you maintained the line in terms of intensity of marketing investments, to get a little bit of a sense of that?

We maintained our line. Nothing different.

We're so happy of how we have come out in the fashion shows, always in the top three, five shows of the season. We have seen the kind of interaction with our clients and fans across the world.

Not really nothing. We didn't do nothing, and we have gone through our own journey.

Very clear. Thank you so much.

Grazie. Next question, please.

Good morning. Good afternoon.

This is Melania Grippo from BNP Paribas. I would like to ask you if you could please give us an idea of what was the performance by category for both brands and which category did outperform in Q1?

As I said, on Prada, women was better than men. Leather goods came first.

Ready-to-wear was good, and shoes was third.

The same thing applies to Miu Miu?

Miu Miu was balanced.

Also, I have a follow-up on what you mentioned regarding the full-price sales. I just would like to understand if you're continuing to cut your number of outlet, if you can update there.

Thank you.

In the next three years, we will trim yet another five, six stores. For 2026, basically we have done.

Thank you.

Next question, please.

Hi management. Thanks for taking my question.

Can I just ask, firstly, our wholesale organic growth was very strong at 17%. How much of that wholesale growth is Versace versus Prada and Miu Miu, please?

Thank you.

No, it was basically the

In organic it is not.

Yeah. There is no Versace in there, but it's what we discussed at the end of the fourth quarter and the effect of the Saks balance up and down.

I see. Great.

Thank you. Then my second question is that on our Q1 retail organic growth is 1%, and because I think partly because is against a very strong comp a year ago.

If, we go along the year, as the year progress, the comps actually will ease. What is a realistic organic growth range for Prada Group into the coming quarters, especially into the second half when the base effect would be much lower?

Thank you.

Thank you. I believe that everything we discussed until now is to try and give a sense of what we see, what we feel, what we believe may happen, and at the same time of the many uncertainties that remain.

Therefore, I don't think we can be more specific than or add anything to what we already said in that regard.

Definitely. Thank you.

My last question is that what is our latest proportion of sales coming from tourist consumption globally year to date? How would such level compared to past two to three years?

Thank you.

We've never given that figure, and I believe that was the same question asked before to which I give the same answer. I'd say that if you compare the past couple of years, travel flows change all the time.

We've seen it also in the past few months. Think about what's been happening in Japan, for example, and so on and so forth.

The overall mix and contribution doesn't change that significantly.

Right. Great.

Thank you very much. Thanks.

Thank you. Next question, please.

Yes, hello. Sorry, just one question from my side left is about space effect at Miu Miu.

Should we also assume that this should become more evident in the next few quarters? If you can remind us your plan in this respect for 2026 and 2027?

Thank you.

Hi, Paola. Andrea.

The answer to the second part of the question is, Andrea said it in the past call. We've got an expectation to add for Miu Miu by the end of the year another 5 to 10 stores.

No changes in that regard. Therefore, of course these stores also will take time to get to a run rate, and also the openings will be in the next months, some closer, some more towards the end of the year.

Yes, there would be even if not a meaningful, but there would be some impact coming positive.

Do you confirm, if I remember correct, that we shouldn't envisage a further space effect, a further store openings for 2027, or am I wrong?

Significant, no, not significant. Because as we said, there will be of course openings, but there will also be closures.

Net-net, not material.

Thanks.

On Miu Miu. Yeah.

On Miu Miu. I believe the question was on Miu Miu.

On Prada, net-net we will probably be negative with more closures than openings.

Okay. Thank you.

Next question, please.

Thank you very much for taking my question. I seem to remember, Andrea, from one of our last conversations that you are planning to attract attention back to Prada and that you have a few big white rabbits that could potentially be extracted from your hat.

Without revealing any secrets, could we maybe get an idea of where you would get them? Is it major events that you're planning?

Is it major store openings? We are, I think, in a market where the wind is very very very weak, and so catching the wind is important, catching attention from consumers is very important.

We see that your competitors have done that by appointing new creative directors. I wonder what you could counteract to that.

Thank you very much indeed.

I think that we have two regions in the world where we still have to conquer our fair share. It's two big regions in the world, and it's America and China.

We are doing and we are showing to those markets a very high level of commitment. Always keep in mind the purchase of buildings on Fifth Avenue and the future projects there.

On the other side, in China with the Rong Zhai development, I think that we have built our epicenter in China, and I think that both teams are really evolving extremely well, and we still have, I think, a long journey of opportunities and market share gain. Then, I think that we are very well balanced today on certain things where we were not.

We were not fully ready for high-value transactions. I think we are today.

I think that we had to prove to ourselves more than to our clients, and I think that in the last 12-18 months we have been able to do it, and we sold more precious bags in this first four months compared to all 2025. We are evolving and we are growing.

Similarly, we always had a way to attract with certain of our product categories new clients. We have done a huge push on our Re-Nylon projects, our UNESCO and SEA BEYOND projects during the month of April out of stores and in the stores with a real new Re-Nylon collection very well received and with very competitive pricing.

I think we're going both ways. We discussed about Alexander House, but we are now going to open in the next 12 months at least another three or four big places for Prada, and we will talk about them as we move along.

Grazie. Thank you, Andrea.

Thank you. I think that we are over with the questions.

Thank you to all of you, and see you soon. Ciao, ciao.