ier, improving from 1 per cent in the first quarter to 5 per cent in the second. Meanwhile, adjusted operating profit fell 14 per cent to €530 million, compressing the margin from 22.6 per cent to 17.4 per cent, while group net income declined 15 per cent to €327 million. A new cycle, one brief per brand “In 2026, we are building a new cycle and a new cycle, which is pretty simple and is made of a constant solid growth for Prada, a normalised but substantial growth for Miu Miu and a new brand and creative journey through important milestones for Versace,” Andrea Guerra, CEO and executive director of Prada Group, said during the earnings call.  Versace itself contributed €305 million in net revenues, roughly a 10th of the group total, including €219 million through its own stores, with performance described as in line with expectations. Management indicated the brand would remain at a double-digit operating loss for the full year as the repositioning proceeds.  During the first half, the company closed 10 non-strategic stores, pivoted away from discounting and appointed Pieter Mulier as creative director, effective July 1. Lorenzo Bertelli, Versace’s executive chairman, told analysts to expect “another slightly smaller network next year”, with Mulier’s first collection, La Vacanza, showing in May 2027 and not reaching every store until 2028. “We have another tough six months with no show. And we need to fight. We need to get all the right opportunities and not burn any of them. We are all working on it,” Guerra said.  Meanwhile, the Prada brand’s retail sales rose 3.3 per cent, accelerating to 6.3 per cent in the second quarter, driven by like-for-like, full-price sales. “The top spenders are there, they’re healthy, they are wealthy, and we need to gain our fair share there,” Guerra said, describing a strategy of holding entry prices steady while stretching the range upward. Miu Miu, which supplied most of the group’s momentum for several quarters, saw retail sales rise 2.5 per cent in the second quarter, up from 2.6 per cent in the first.  “I would say that the Miu Miu effect from the Middle East has been quite big,” the CEO said.  Miu Miu has grown from €450 million to just shy of €2 billion in five years while adding only about 10 stores, and management now said its long-term growth band is at 5 to 10 per cent. Americas drive, Middle East drags Asia Pacific, the group’s largest region at 35 per cent of retail sales, grew 6 per cent organically with the second quarter at 8 per cent, and Prada called out positive trends across the region at a time when peers still describe Chinese demand cautiously. Bonini said spending by Chinese clients rose double digits in the second quarter, at home and abroad, even as industry-wide store traffic stayed weak. “The market which is less readable today is China,” Guerra said, adding that it is also “the market where Prada has the biggest opportunity in market share gain”. Japan rose 2 per cent organically for the half but 8 per cent in the second quarter, helped by solid local consumption and returning tourist flows. The Americas were the outright engine, up 17 per cent organically and accelerating to 19 per cent in the second quarter, driven by local demand. Europe fell 4 per cent organically, improving to a 2 per cent decline in the second quarter as tourist spending began to recover, while the Middle East fell 24 per cent amid conflict throughout the period. Counting the cost The group closed the half with net debt of €693 million, against net cash of €352 million a year earlier. However, against the peer set, the numbers retain their shine. LVMH managed 2 per cent organic growth at a 22.5 per cent margin, while Kering has only just recorded its first positive quarter in three years.  Guerra told CNBC he sees no turning point: “I don’t think we are at an inflection point in luxury… we’re still in a world where anything can happen any time.”