Revenue growth strengthened in the second quarter, but profit fell and analysts kept cautious ratings as Versace weighed on margins despite better-than-expected sales.
Prada's second-quarter sales beat market expectations, helping sustain first-half revenue growth even as profit declined and analysts remained cautious on margins. The Italian luxury group reported first-half 2026 net revenue of about 3.048 billion euros, up 16% year over year at constant exchange rates. Adjusted EBIT was 530 million euros with a 17.4% margin, while profit attributable to shareholders fell 15.3% to 327 million euros and earnings per share were 0.128 euros. Citi said second-quarter sales reached 1.62 billion euros, about 3% above market expectations, with organic growth excluding the newly consolidated Versace accelerating to 7% from 3% in the first quarter. Wholesale revenue rose 21%, Prada brand retail sales increased 6% and Miu Miu retail sales gained 3%. Morgan Stanley also said second-quarter sales and first-half EBIT came in above expectations, helped by improved gross margins, but both banks kept cautious ratings because Versace is expected to continue weighing on second-half profitability. Management described trading as softer in late June and early July before returning to a good rhythm, and said its brands should continue to outperform the broader luxury market.