Prada has problems with the change of CEO
2022.11.29 10:01
Prada has problems with the change of CEO
Budrigannews.com – Prada, an Italian fashion house (OTC:)According to a person with knowledge of the situation, is going to put former Luxottica chief Andrea Guerra in a top management position to make it easier for the next generation of the founding family to take the helm.
As of the end of 2021, Hong Kong-listed Prada has grown into a group with 365 directly operated shops and annual revenues of 3.7 billion euros ($3.8 billion), with 40% of those revenues coming from the Asia-Pacific region. Prada was founded in Milan in 1913 as a leather goods shop by Miuccia Prada’s grandfather and his brother.
Prada CEO Patrizio Bertelli, 76, stated a year ago that he planned to hand over the reins of the group he leads with wife Miuccia to their 34-year-old son Lorenzo after overseeing a successful turnaround since 2017 to reverse a slide in sales.
Prior to his father telling investors in November that he could take over as CEO within “three to four years,” Lorenzo, who is in charge of Prada’s marketing, had joined the board of directors of the company in May 2021.
According to a source familiar with the situation, Prada has been anticipating a family succession and looking for a senior figure to work alongside Lorenzo while he acquires industry experience.
Lorenzo joined the family business in 2017 as head of digital communication and is widely regarded as a quick learner.
According to the first source, Prada is finalizing a deal with Guerra to hire the 57-year-old manager. Guerra left his position as head of LVMH’s hotels division earlier this year.
Prada and Guerra didn’t say anything about the news.
Guerra oversaw a more than doubling in sales at Luxottica during his tenure as CEO from 2004 to 2014. Since 2003, Luxottica has produced and distributed eyeglasses under the Prada and Miu Miu brands owned by the Prada group.
Massimo Vian, a seasoned executive at Luxottica who was hired by Guerra in 2005 and later served as head of operations at the eyewear company, joined Prada as chief operating officer in 2020.
According to Jefferies, “We believe Guerra would add invaluable experience and significant gravitas to the Prada senior management team,” and he also stated that the market would applaud any progress made regarding succession plans.
Prada brought in Belgian designer Raf Simons in 2020 to share the director’s chair with Miuccia. Last week, Simons said that he would shut down his own brand, which was seen as a sign that he would take over completely from Miuccia.
Another two sources briefed on the matter stated that Prada is also researching a potential Milan listing to expand its investor base eleven years after its Hong Kong market debut. Prada would not sell any new or existing shares, so the move would not result in any cash or reduce the family’s 80% stake.
The information that Prada might announce Guerra’s arrival as early as January was first reported by the Italian daily la Repubblica.
