The company, originally known in Italian as Fratelli Prada (\"Prada Brothers\"), was founded in 1913 by Mario Prada. In 1978, Mario's granddaughter Miuccia Prada inherited what was still a leather goods business from her mother, and led the company's expansion into couture.

Prada's first prêt-à-porter, or \"ready-to-wear\" collection was designed by Miuccia Prada in the autumn/winter season of 1989.

In addition to the original Prada line, the company introduced the Miu Miu collection, a lower-priced line aimed at a younger audience, in 1992. The Miu Miu line, which shares Miuccia Prada's nickname, emphasizes earthy colors and a less haute couture look, evoking an overall more bohemian style. In its advertising campaigns, waif-like models in \"home photo\" poses further the look. Miu Miu clothing is often simple, and evokes a continual image of high-end vintage items. It was followed by the Prada Sport collection, which featured tennis shoes.

Prada won a Council of Fashion Designers of America International Award for accessories in 1993.

As luxury conglomerate

Like the current Gucci and Christian Dior groups, Prada held, for a time, a portfolio of designer labels under its corporate umbrella.

Following the lead of other companies in a popular trend to absorb as many other fashion houses as possible, Prada took on large debts when it acquired the financially floundering Rome-based house of Fendi in the early 1990s. Prada assumed shares in Fendi with the Moet Hennesy Louis Vuitton (LVMH) company. Prada was unable to turn around/support the money-losing Fendi label, and sold its Fendi shares to LVMH. Prada is still recovering from this debt.

The Prada Group's other notable purchases in the 1990s were the Helmut Lang and Jil Sander labels. By 2006, however, the Jil Sander label had been sold, and the group was planning to sell the Helmut Lang label as well. Jil Sander was sold to the private equity firm Change Capital Partners, which is headed Luc Vandevelde, the chairman of Carrefour.

Architecture

Prada has commissioned international architects, most notably Rem Koolhaas and Herzog & de Meuron, to design flagship stores in various locations, both as a marketing and branding concept as well as a differentiating feature.

In 2005, near the West Texas towns of Valentine and Marfa, a pair of Scandinavian artists, Michael Elmgreen and Ingar Dragset, unveiled Prada Marfa, a sculpture masquerading as a Prada mini-boutique. Located along an isolated stretch of U.S. Highway 90, the 15 by 25-foot adobe and stucco building was partially funded by the Prada Foundation.