Prada SpA reported 2025 results that met market expectations, while warning investors that its newly acquired Versace brand will dilute profit margins as the Italian luxury group works to turn it around. Net revenue rose 9% at constant exchange rates to €5.72 billion ($6.64 billion) for 2025, the Hong Kong-listed company said Thursday.

Its popular Miu Miu line posted a 20% fourth-quarter revenue increase, meeting estimates but far below the buoyant growth of the past. Versace, Prada's biggest-ever acquisition, lost money in 2025, with losses of the same magnitude expected this year while sales contract from €684 million. CEO Andrea Guerra said the €1.25 billion purchase completed in December "will drive a dilutive effect" on the group's margin for earnings before interest and taxes in 2026.

The results come as some European fashion names show signs of recovery from a luxury slowdown in the US and China. Prada's Asia Pacific retail sales registered 11% growth at constant exchange rates, while the Americas ended at up 18%, supported by local demand. The shares have declined 3.6% this year, reflecting investor concerns about the near-term margin impact of the Versace integration.