Miu Miu is hot right now — and Prada's chic sibling is helping it buck the luxury slowdown

• Prada Group reported an 18% jump successful income successful Q3.
• This was mostly owed to nan occurrence of its sister brand, Miu Miu.
• The marque has go celebrated pinch Gen Z shoppers and young celebrities.

Prada Group is defying nan luxury slowdown acknowledgment to its Miu Miu brand.

While its peers for illustration LVMH and Kering reported anemic Q3 results, driven successful nary mini portion by slumping request successful China, Prada is joining Hermès arsenic 1 of nan fewer luxury houses to beryllium thriving correct now.

Retail income crossed nan Italian manner group grew 18% successful nan astir caller quarter. Sales were up 2% astatine its namesake marque but it was Miu Miu that stole nan show — reporting a 105% summation successful income successful Q3 versus nan twelvemonth before.

The much youthful and affordable sister marque of Prada was founded by Miuccia Prada, the granddaughter of nan group's founder, successful 1992.

Its caller occurrence tin beryllium partially credited to its burgeoning Gen Z instrumentality guidelines and nan cult pursuing down products like its micro-skirt, which went viral aft debuting successful 2021 and was worn by Emily Ratajkowski, Hunter Schafer, and Hailey Bieber.

Blanca Zugaza Escribano, a manner and luxury advisor astatine Metyis, told BI that Miu Miu is simply a premier illustration of a luxury marque that already has its digit connected nan beat of what excites Gen Z — a user guidelines that is becoming progressively important for luxury brands to entreaty to.

But nan brand's occurrence seems to person moreover taken institution execs by surprise.

"I would dishonesty if we said that we would person predicted to double our business twelvemonth connected year," Andrea Guerra, CEO of Prada, said during a telephone pinch investors connected Wednesday.

Things are going truthful good that analysts were told Prada plans to summation nan size of Miu Miu stores and unfastened up caller ones successful immoderate regions wherever it doesn't person a presence.

Prada Group's CFO Andrea Bonini said Miu Miu's capacity has benefited Prada, boosting profit margins and enabling nan institution to put much successful its Prada brand.

"Likewise, Miu Miu would astir apt not beryllium experiencing this type of maturation coming if it hadn't been portion of a larger group," Bonini added.

In a statement to clients connected Wednesday, Bernstein expert Luca Solca said that nan brand's existent trajectory "confirms our position that nan marketplace is underappreciating nan maturation that Miu Miu tin make successful nan adjacent 12 to 18 months."

"At nan aforesaid time, it besides confirms our interest that Prada — which is still nan very bulk of nan business — could beryllium good past its highest maturation potential," he added.