Prada 1913

[winston]

not vested

PRADA(1913)

Analysis：
According to the commercial and financial update of PRADA (1913), 2021 retail revenue was well above 2019 levels for the first nine months of the year.

Retail sales increased 18% in Q3-21 on 2 years stack at constant exchange rates.

Other key metrics ors also showed further profitability improvement.

For instance, gross margin stayed steadily above 76% since Q3-21.

EBIT margin rose above 2019 level.

Due to strong cash flow generation and net working capital improvement, net financial position close to zero at the end of September 2021. (I do not hold the above stock)

Strategy：< /b>
Buy-in Price: $56.00, Target Price: $62.00, Cut Loss Price: $52.50

Source: Phillips

[winston]

not vested

PRADA(1913)

Analysis：

The Prada Group (1913) reports net revenues of Euro 3,365.7 million, up by 40.6% at constant exchange rates from 2020 and by 7.8% from 2019.

Gross margin rose to 75.7%, against 72% for 2020 and 71.9% for 2019.

Profit rose to 294 million euros compared with a net loss of 54 million euros in 2020.

The commercial strategy was behind this growth with a more profitable sales mix, the elimination of markdowns, and a fully streamlined wholesale distribution channel. (I do not hold the above stock)

Strategy：
Buy-in Price: $39.50, Target Price: $43.50, Cut Loss Price: $37.50

Source: Phillips

[winston]

not vested

Prada (1913 HK): Back in vogue [BUY; TP: HK$67.41]

Positive YTD performance driven by key markets including Europe, the US and Japan

Double-digit revenue growth across all product categories as well as all brands of PRADA, MIU MIU and CHURCH’s

We project >25% earnings CAGR in FY21-23F; reiterate a BUY call with new TP of HK$67.41

Source: DBS

[winston]

not vested

Prada revenues up 22pc

Italy's Prada (1913) posted a 22 percent growth in first half sales, above market estimates, with lockdowns in China and the conflict in Ukraine offset by the strength of Europe, United States and the Far East.

Revenues at the luxury group totalled 1.9 billion euros (HK$15.15 billion) compared with 1.8 billion euros expected by analysts according to a Refinitiv consensus.

Earnings before interest and taxes jumped to 305 million euros from 166 million euros in the first six month of last year and compared to a consensus estimate of 287 million euros.

The company did not declare any dividend.

Source: Reuters

https://www.thestandard.com.hk/section- ... es-up-22pc

[winston]

not vested

PRADA(1913)

Analysis：

For the six months ended 30 June 2022, Prada Group (1913) reports net revenues of Euro 1.9 billion, up by 22.5% at constant exchange rates on the first six months of 2021 and by 22.2% on those of 2019.

Gross margin rose to 77.7%, up from 74.3% in 2021 and 71.7% in 2019, mainly thanks to strong domestic demand and some recovery of global tourism flows as well as Prada Group`s observations on societal changes, research in historical archives and collaborations with new partners resulting in a range of products that serves an increasingly connected, young and diverse clientele.

The Group will continue to invest in its factories along with the definition of new industrial verticalisation projects, which will soon be implemented. (I do not hold the above stock)

Strategy：
Buy-in Price: $45.00, Target Price: $49.00, Cut Loss Price: $43.00

Source: Phillips

[winston]

not vested

Prada (1913 HK)

Margin is the key

2022 saw record-high gross margin of 78.8% and a 58% y-o-y jump in earnings to EUR465m, above expectations

1Q23 retail revenue up c.14% q-o-q, at constant currencies; sound momentum maintained despite the higher base

China, in particular, will ride on easier comps in 2Q23, which would likely fuel better y-o-y growth.

Maintain BUY with TP of HK$73.22

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=13278

[winston]

not vested

Prada net jumps 62pc

by Aiden He

Prada (1913) posted a 62.1 percent rise in net profit to EUR305.2 million (HK$2.65 billion) in the first half of this year compared to a year ago, helped by a strong growth in Asia and Europe.

The Italian luxury group's sales increased by 20.5 percent to EUR2.23 billion on constant exchange rates in the period but were slightly below estimates.

All but one region showed a double-digit gain in revenue with that in Japan and Asia Pacific jumping 49.2 and 25.3 percent but Americas dipping 1 percent.

It did not declare any dividend.

The gross margin climbed 2.6 percentage points to 80.3 percent on higher prices and subsiding inflationary pressures, the fashion group said.

That boosted the adjusted operating profit by 48.6 percent to EUR491.4 million, beating a forecast of EUR457 million.

Source: The Standard

https://www.thestandard.com.hk/section- ... jumps-62pc

[winston]

not vested

PRADA Says Co. Ready for Milan Dual Listing But It Is Not Top Priority

PRADA (01913.HK)'s CEO Andrea Guerra expressed at an analyst phone conference that there is no news concerning the potential dual listing in Milan.

Andrea Bonini, chief financial officer of the company, meanwhile, commented that, in terms of technical feasibility, the group is ready for a dual listing in Milan but that is not the top priority for the group at the moment.

Instead, the group will concentrate on ramping up investments in branding and its physical stores in the second half of the year.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Spectacular margin expansions

Prada reported 20.5% y-o-y revenue growth on constant currencies for 1H23.

Net profit up 62%, beat expectations.

Gross margin improved further to new record high of 80.3% on better average prices, channel-mix and economies of scale, which is deemed sustainable given its strength in brand positioning that focuses on casual lifestyle;

Miu Miu’s tremendous 50% revenue growth was also encouraging.

We reiterate a BUY with new TP of HK$75.37

Please refer to the following for our key takeaways from results briefing:-

Prada reported 17.4% y-o-y growth in 1H23 revenue to EUR2.2bn (+20.5% on constant currencies), driven by full price, like-for-like sales.

Net profit expanded by 62% y-o-y to EUR305m on better gross margin and operating leverage, above expectations. Gross margin improved to a new record high of 80.3% (1H22: 77.7%) and lifted gross profit to EUR1.8bn.

Adjusted EBIT jumped 49% to EUR491m on a 22% Adjusted EBIT margin (1H22: 17.4%).

Strong balance sheet with net cash of EUR283m as of Jun 2023.

Retail revenue (89% of group revenue) increased by 21% y-o-y in 1H23, driven mainly by sales volume growth.

Following the return of the DFS channel post-COVID-19, wholesale revenue (9% of group revenue) also rose by 9% y-o-y despite Prada’s increasingly selective of its wholesale customers and its core strategy to lift direct sales.

Royalties (2% of group revenue) also rose sharply by 66% y-o-y, with 2Q23 alone up 80% y-o-y.

In terms of retail sales by markets in 1H23, on constant rates, Europe (29% of retail revenue) sustained strong growth trajectory and grew 24% y-o-y as tourist sales picked up post-pandemic while local demand remained strong.

Asia Pacific (36% of retail revenue) recorded 25% y-o-y growth on a low base and China’s reopening, with robust Chinese recovery more than offsetting a weaker trend in S. Korea amid temporary closure of flagship store in Seoul.

Americas (18% of retail revenue) experienced revenue contraction by -1% y-o-y on tougher comps.

Japan (11% of retail revenue) built on 1Q23 sales momentum, leveraging on its strong brand appeal and recent retail network investments to rise by 49%.

Middle East (5% of retail revenue) kept a solid growth at 14% y-o-y.

In terms of retail sales by categories in 1H23, on constant rates, Ready-To-Wear continued to outperform and saw 36% y-o-y revenue growth, followed by Footwear with a 20% y-o-y revenue growth, and Leather Goods with 12% y-o-y revenue growth.

Prada’s long-term target is to see Leather Goods contributing c.60% of retail sales, vs. the current share of 47%.

Successful marketing campaigns such as Prada’s ‘The Glass Age’ campaign for their Galleria bag and Miu Miu’s strong sales in Wander, Pocket and Arcadie bags, showed good momentum.

The company believes its new line of fine jewellery products, Eternal Gold, could become a strong leg to Prada’s operations as it generated an exceptional 50% y-o-y growth, although contributions just took up 3.3% of the company’s retail sales and remained small.

In terms of retail sales by brands in 1H23, on constant rates, Miu Miu scored 50% y-o-y growth, while Prada saw a solid performance with 18% y-o-y growth on a bigger base.

Prada is aiming to restructure the business of Church’s (1H23 sales: -21% y-o-y) and restart from scratch. While its non-closing stores saw positive like-for-like growth, a significant amount of store and account have been closed as it strives to find a clear identity for the brand for repositioning in the market, with targets of around 25-30 self-operating stores and 140-150 wholesale accounts worldwide.

Prada seems to be unscathed by inflationary pressures, as its strong ability to adjust average selling prices more than offset increasing production costs. Looking ahead, the company aims to sustain its high gross margin of 80.3%.

Plans to increase investments in communications and brand desirability should increase its full-price sales volume. The closure of off-price retail channels could also help lifting average selling prices.

Prada’s position at higher segments of the market with a casual lifestyle focus post its unique strength in brand positioning. It also plans to penetrate further into the casual lifestyle sector, including its partnerships with sportwear brands, such as Adidas and New Balance.

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=15182

[winston]

not vested

Prada reported a 10 per cent rise in third quarter revenues on Tuesday (Oct 31) as a strong performance in Asia and Europe helped to compensate for weakness in the Americas.

For the first nine months of the year net revenues totalled S$4.8 billion, a rise of 17% at constant exchange rates, with the ready-to-wear category showing the fastest growth and the Miu Miu brand also expanding rapidly.

Source: Phillips