Italian luxury house Prada is bucking the industry trend, posting a 12.5 percent jump in first-quarter sales even as global luxury consumption slows and trade tensions cast a shadow over retail markets. The group’s robust performance contrasts sharply with the struggles of its French rival Kering, which saw a double-digit drop in revenue driven by another sales plunge at its flagship brand Gucci.

Prada’s group revenue reached 1.34 billion euros ($1.52 billion), with growth recorded across all regions. Chairman and Executive Director Patrizio Bertelli called the results a "solid performance" in "an increasingly turbulent and uncertain landscape."

While the Prada brand itself saw a minor dip of 0.2 percent, the group’s Miu Miu line, aimed at a younger demographic, delivered a major boost with a more than 60 percent rise in sales. Miu Miu now accounts for nearly a third of Prada’s total revenue.

The Asia-Pacific region remains Prada’s biggest market, with sales rising 9.6 percent to 437 million euros. Japan was even stronger with an 18 percent jump. In Europe, driven by both local demand and tourism, sales rose 14.3 percent. The Middle East saw a 26.5 percent surge, while U.S. sales grew 9.9 percent to 201 million euros.

This performance is especially notable given the backdrop of global tariff volatility, particularly in the U.S., where many international companies have been forced to rethink their shipping and inventory strategies. Although luxury goods are not directly targeted by tariffs, the threat of trade conflict under former President Donald Trump’s policies has led many firms to stockpile goods in American warehouses, aiming to avoid price increases and potential supply chain bottlenecks.

Luxury players like French cosmetics giant Clarins and Swiss watchmakers were among those that increased U.S.-bound shipments early in the year. Clarins alone built up $2 million worth of goods in American inventory, while Swiss watch exports to the U.S. rose 14 percent in March compared to the previous year.

This stockpiling trend, while short-term in nature, helped some brands maintain U.S. market stability. It remains unclear if Prada followed a similar strategy, but its nearly 10 percent U.S. sales growth suggests the group managed to shield itself from the uncertainty better than most.

That resilience is unwelcome news for French rival Kering, whose fortunes continue to sink as Gucci falters. Kering reported a 14 percent drop in first-quarter revenues to 3.9 billion euros ($4.4 billion), dragged down by a 24 percent plunge in Gucci sales. The brand, which still represents half of Kering’s total sales, had already seen a 20 percent fall during the same period last year.

CEO François-Henri Pinault admitted the group “faced a difficult start to the year” and said they were “increasing our vigilance” amid industry-wide challenges. Attempts to turn things around, such as appointing Demna Gvasalia to lead Gucci’s creative direction in March, failed to inspire confidence. Kering’s stock fell 11 percent following the announcement.

Kering also warned that it could be affected by U.S. tariffs. “We consider that we have the capacity to protect our margins via price increases,” said CFO Armelle Poulou, although she admitted that “there are still enormous uncertainties.”

Particularly damaging for Kering was a 25 percent drop in Asia-Pacific sales, underlining the extent of Gucci’s decline in what is usually a strong region for luxury spending. In contrast, Prada’s strength in Asia appears to be cushioning it against the broader slowdown, offering the Italian brand momentum as it moves to consolidate its recent acquisition of Versace for 1.25 billion euros.

While Prada looks to expand its portfolio and capture younger markets with Miu Miu’s rise, Kering’s future remains more precarious. The contrasting paths of these two European luxury giants highlight how strategic positioning, regional diversification, and brand adaptability are becoming increasingly critical in a volatile economic landscape.