Post-pandemic revenge shopping and a growing appetite for the finer things in life are working out well for luxury goods markets worldwide. Some brands have even witnessed unforeseen winners in the first half of fiscal year 2025. Global data and business intelligence platform and data aggregator Statista has revealed surprising data for the luxury industry in the current fiscal year, projecting anticipated market growth of 3.22 percent (CAGR 2024-2028).
One bright spot is Milan-based Prada, which owns the Prada and Miu Miu luxury brands. The company has posted year-over-year net revenue growth of 17%, with retail sales up 18%. Prada’s performance beat average estimates of $2.71 billion for the first half of 2024. Prada’s retail sales growth rose 6% year-over-year, while Miu Miu’s retail sales rose 93% year-over-year.
The company has seen double-digit growth in Asia Pacific, Europe, Japan and the Middle East, with some upward movement in the Americas as well, the company said. Despite higher investments for expansion, the company has also witnessed an EBIT margin of 22.6 percent. The balance sheet is also positive in terms of cash.
In a company statement, Patrizio Bertelli, President and CEO of Prada Group, commented: “The strong results recorded in the first half of the year reflect the strength of our brands and the disciplined execution of the Group’s strategy. We are pleased with the above-market performance and the high-quality, comparable growth trajectory we have achieved in an increasingly uncertain market environment. The flexibility of our organization gives us confidence in the Group’s ability to navigate the coming months, as we continue to invest across all our businesses.”
What has kept Prada going despite strong inflationary pressures around the world? The company has claimed that its “creative approach to breaking new ground with consumers” is one of the two main reasons that have worked well for its brand’s rise. Brands have also invested heavily in brand interaction. What seems like a novel mechanism of brand interaction is that Miu Miu has even launched a select Literary Group to initiate a discourse on modern literature.
According to Statista’s projections on luxury goods markets, the global luxury goods market reflects a cumulative revenue generation of $368.90 billion in 2024. The market is anticipated to grow at an annual rate of 3.22 percent (CAGR 2024-2028).
The largest segment within this market is luxury fashion, which is expected to reach a market volume of $115.9 billion by 2024. Comparing revenues on a global scale, the United States leads the market with $77.28 billion in 2024.
The report also forecasts that online sales will account for 15.4 percent of total luxury goods market revenue by 2024. Luxury sales in the US have seen a strong rebound, driven by increased consumer confidence and a growing appetite for high-end fashion and accessories. For the brand-agnostic, get ready to see more Guccis, Pradas and Chanels popping up in showrooms as the luxury trend climbs the charts.
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