Luxury designer handbag brand flags shift in customer behavior

A new kind of customer is shaping the future of luxury fashion.

May 2, 2025 - 16:38

Luxury isn’t falling — it’s recalibrating.

According to Prada Group’s latest earnings, shoppers are indeed still spending. The group pulled in €1.34 billion in revenue in Q1 2025 — that's nearly $1.5 billion and a 12.5% increase year-over-year.

But spending habits are shifting.

The data show strong overall growth for the group (up 13% for the period). But while the Prada brand itself remained flat, its sister brand surged over 60% — powered by its rising cultural relevance and fashion-forward positioning.

In other words, shoppers haven’t stopped spending; they’re just choosing more carefully.

Personally, I’ve always been a Prada girly — loyal, classic, understated. But seeing this stunning momentum from the company's subsidiary, I’m starting to wonder if I’ve been missing out.

Miu Miu’s success says it all: relevance matters more than ever.
Image source: Cheng Xin/Getty Images

Prada Group’s Q1 earnings show startling change

Sales rose across almost every region, with Japan (+18%), Europe (+14.3%), and the Middle East (+26.5%) leading the way.

In the Americas, growth was steadier at +9.9%, with some volatility in consumer behavior.

The Prada brand held steady despite sector headwinds — but its more playful, accessible, and affordable sister brand Miu Miu became the breakout story, with 60.2% year-over-year retail growth.

Miu Miu is a luxury label that's perfected creative and cultural timing, offering eye-catching looks such as impossibly short miniskirts and enormous, seemingly Wookiee-inspired faux-fur boots.

Meanwhile, Prada Group's leadership has described the modern luxury customer as “more informed and discerning,” which signals something bigger than a regional trend.

It’s a mindset shift — and it’s changing the definition of value.

Today’s luxury customer isn't walking away. They’re just walking with intention.

Luxury fashion is tapping into emotion

If this quarter is any indication, the future of luxury is less about status symbols and more about emotional value.

That could mean leaning into personal style over seasonal trends. Or choosing brands that feel aligned with something deeper — whether it’s craftsmanship, innovation, or cultural momentum.

Brands like Miu Miu are thriving because they’ve tapped into something relevant without chasing every passing moment. For Prada Group, this creates both an opportunity and a challenge.

The data show people are still willing to spend — but the bar for what earns that spend is rising. The message for the rest of the luxury space is loud and clear: elevated and expensive isn’t the flex it used to be.