Prada Spa Ord

Good afternoon, everyone, and thank you for joining the Prada Group's first quarter 2025 revenue update. I'm delighted to be with you again, and with me today is our Group CEO, Andrea Guerra. We will start with some remarks 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 2 of our presentation. With that, I will hand over to Andrea Guerra.

Thank you, Andrea. Good morning. We had a positive and solid first four months of the year with a low teen double digit growth. Has not been easy. The sector is now going flat or backwards since 18 months and there is no real improvement signals in front of us. We were able to show a plus 13 in retail growth with the Prada brand competing against a very strong quarter in 2024 of almost double digit growth on 2023. We will continue to build Prada desirability and product innovation to remain in a positive territory even in these tough circumstances. Miu Miu continued on its path with a strong growth in the quarter. Prada brand continues on its journey. on its journey of cultural innovation, and after a very long temporary gastronomic offer in Harrods, opened two very unique locations in 2025. The main being Mishang in Rongzhai, Shanghai, a kind of melting pot of architecture and gastronomic offer between Milan and Shanghai. Mishang is the translation of obsession. Location is conceived together with director Wong Kar-wai. It's a cultural landmark. So Rongzhai in Shanghai has become the brand epicenter in China. with a section dedicated to our Frondazione Prada, a section dedicated to the ultimate experience of our clients, and a section in the garden dedicated to Michang gastronomic experience. I think that this is a big step forward and allows everybody to touch our intentions, our objective, our ambition to constantly carve society culture with our actions. Miu Miu in this first four months of the year was well received at 360 degrees in all countries, all products, categories, and consumer segments. In this last four months, we launched Miu Miu Custom Studio. at first was part of the gymnasium pop-up but then as a standalone project in which we together with the Miu Miu community can interact on many different products to end up with each of one of our clients and consumers with their Miu Miu unique product. This is another step forward in Miu Miu to be part of a larger and stronger community. People are reacting very positively to this project and we are very happy about it. Andrea, it is now your turn to focus on revenue details.

Thank you. And starting with net revenues by channel, the group recorded net revenues of euro 1.34 billion in the first quarter of the year, up 13% at constant effects on the same period last year. Over the period, exchange rates had a mild positive impact of 50 basis points on revenues. We recorded a solid performance at retail level, with sales reaching EUR 1.22 billion, up 13% at constant effects and driven by like-for-like and full-price sales. Wholesale was up 7% versus the same period last year. On royalties, the business delivered plus 13% in Q1, a sustained performance supported by both eyewear and fragrances. Retail sales by brand. Prada delivered a highly resilient performance with retail sales stable over the period against high comps. And indeed, you remember that the first quarter was the best for Prada in 2024 in terms of year-on-year growth performance, followed by the second quarter, and then the comps eased slightly in the second half. Miu Miu confirmed its remarkable growth trajectory with 60% at constant FX. Growth was widespread across all categories and regions. As a result, the brand contribution to group retail sales increased to 31% versus 22% in fiscal year 24. Moving to slide 9, retail sales by geography. Over the quarter, the group achieved robust growth across all regions. Asia-Pacific delivered a good performance with sales up 10% at constant effects on a tough comparison base and broadly unchanged market conditions in the region. Europe was up 14% year-on-year, driven by domestic and tourist spending. The Americas, up 10%, continued to be supported by local demand, notwithstanding increased volatility since the start of the year. Japan remained on a positive trajectory, up 18% over the period, albeit in further moderation, which is expected to continue as we saw extraordinary growth over the first half of 2024, driven by local consumption but also very, very significant touristic flows. Lastly, Middle East delivered the best performance of the quarter with retail sales up 26%. And with that, I will hand back to Andrea Guerra for some closing remarks.