Core Viewpoint - Versace has been sold to Prada for $1.375 billion, approximately 33% less than the $2.15 billion paid by Capri Holdings seven years ago [1][2] Group 1: Acquisition Details - Prada announced on April 10 that it plans to acquire Versace for $1.375 billion (approximately €1.25 billion) [2] - Following the acquisition, Versace will become a subsidiary of Prada, which aims to leverage Versace's distinct aesthetic to complement its brand portfolio [2] - The acquisition price values Versace at 1.33 times its projected revenue for the fiscal year 2024 [6] Group 2: Financial Performance - Capri Holdings, Versace's parent company, has faced declining revenues, with a reported third-quarter revenue of $1.26 billion for the fiscal year ending December 28, 2024, down 11.6% year-over-year [4] - Versace's performance has been the weakest among Capri's brands, with a 28.2% year-over-year revenue drop to $201 million in the second quarter of fiscal 2025 [4] - In contrast, Prada reported a revenue of €5.432 billion for 2024, a 17% increase year-over-year, and a net profit of €839 million, marking a 25% increase [5] Group 3: Market Context and Challenges - The global luxury goods market is experiencing a downturn, with forecasts predicting annual growth of only 2% to 5% from 2025 to 2027 [7] - Analysts express mixed opinions on whether Prada's acquisition of Versace will be beneficial or pose financial risks, given the differing styles and consumer positioning of the two brands [6][7] - Prada's previous acquisition attempts have not been successful, raising concerns about its ability to enhance Versace's profitability [6]

点击上图 ▲立即报名 3月美国通胀超预期降温 4月10日，美国劳工统计局公布3月CPI数据显示，美国3月CPI同比上涨2.4%，为7个月来最低水平，略低于预期的2.5%，较前值2.8%明显下 降；环比下降0.1%，为2024年6月以来首次为负，同时为2020年5月以来最低水平，预期为上涨0.1%。3月核心CPI同比上涨2.8%，涨幅为连续 第二个月回落，创2021年3月以来最低纪录，低于预期的3%，前值为3.1%；核心CPI环比上涨0.1%，创2024年6月以来新低。 多位美联储官员已通过公开评论和访谈释放明确信号，排除了采取预防性降息作为对经济放缓的保险政策，为了最大限度降低关税政策引发的通 胀上行风险，他们可能准备维持政策利率不变。（华尔街见闻） ｜点评｜ 尽管美国3月食品通胀回升，但是在出行、住房、二手车等多维度价格下降的带动下，美国CPI整体超预期降温。3月国际原油价格下 降，部分美国居民因担忧关税政策取消了旅游计划，出行价格有所回落。禽流感继续对美国鸡蛋产业链形成冲击，美国鸡蛋价格快速上涨，并 带动食品行业价格回升，成为阻碍美国通胀回落的主要因素。 随着美国政府关税政策的出台，美国3月CPI数据能提 ...

Core Viewpoint - The luxury goods industry is witnessing a significant merger as Prada plans to acquire Versace for $1.375 billion, marking a notable shift in the competitive landscape of high-end fashion [1][4]. Group 1: Acquisition Details - Prada announced its intention to acquire Versace for $1.375 billion, with the deal expected to close in the second half of 2025, pending regulatory approvals [1][4]. - This acquisition price represents a decrease of approximately one-third compared to the $2.15 billion paid by Capri Holdings for Versace in 2018 [4][6]. - Versace's projected sales for fiscal year 2025 are expected to decline to $810 million, while Prada's revenue for fiscal year 2024 is reported at €5.432 billion, reflecting a 17% year-on-year growth [6][7]. Group 2: Financial Performance - Capri Holdings reported a 6.9% year-on-year decline in Versace's revenue for fiscal year 2024, with a profit margin of only 0.4% [6]. - For the first nine months of fiscal year 2025, Versace generated $613 million in revenue but incurred a net loss of $41 million [6]. - In contrast, Prada's retail sales for its brands, including Prada and Miu Miu, showed significant growth, with increases of 4.2% and 93.2% respectively [6][7]. Group 3: Strategic Implications - The acquisition is seen as a strategic move for Prada to enhance its brand portfolio and leverage Versace's unique cultural narrative, which could provide new growth opportunities [8][12]. - Experts suggest that the merger could enrich Prada's brand matrix and increase its competitive edge in the global luxury market, although it may also introduce operational complexities [12][14]. - Capri Holdings aims to optimize its balance sheet and focus on its core brand, Michael Kors, following the sale of Versace, which may impact its competitive position in the high-end market [13][14].

Core Viewpoint - HSBC Research indicates that Prada's acquisition of Versace comes at an opportune time, potentially differing from its past unsuccessful mergers and acquisitions [1] Group 1: Acquisition Timing and Strategy - Prada's historical acquisition attempts have often ended in failure, but the current acquisition of Versace may be more successful due to strategic fit [1] - As both companies are headquartered in Milan, Prada is well-positioned to manage Versace more efficiently, potentially reducing store numbers and leveraging brand recognition more effectively [1] Group 2: Market Reaction and Price Assessment - Given the macroeconomic uncertainties and skepticism towards luxury goods, the timing and price of the acquisition may prove to be advantageous in hindsight [1] - HSBC maintains a target price of HKD 64 and a "Buy" rating for Prada, despite initial market concerns regarding the acquisition [1]

A股账户直接买港股！T+0交易，当天买卖不怕被套>> 普拉达高开7.63%，消息面上，普拉达将以13.75亿美元收购范思哲。 ...

1 隔夜市场 美股三大指数集体收跌，纳指跌4.31%，标普500指数跌3.46%，道指跌1014.79点，跌幅2.5%；大型科技股集体下挫，特斯拉跌超7%，Meta跌超6%，英伟 达、亚马逊跌超5%，苹果跌超4%，谷歌跌超3%，微软跌超2%。纳斯达克中国金龙指数跌1.14%，中概股多数走低，拼多多、富途控股跌超6%，老虎证券 跌超4%，爱奇艺跌超3%，百度跌超2%，阿里巴巴跌0.57%，理想汽车涨超5%，小鹏汽车涨超3%。 美国3月CPI同比增长2.4%，预估为增长2.6%，前值为增长2.8%。美国3月CPI环比下降0.1%，预估为增长0.1%，前值为增长0.2%。 每经编辑 王瀚黎 王晓波 2 聚焦关税 国家电影局就电影方面应对美升级对华关税答记者问 4月10日，就近期有记者询问美国对华加征关税一事是否会影响到美国电影进口，国家电影局发言人表示，美国政府对中国滥施关税的错误行径，势必会令 国内观众对美国影片好感度进一步降低。我们将遵循市场规律，尊重观众选择，适度减少美国影片进口数量。中国是全球第二大电影市场，我们始终坚持高 水平对外开放，将引进世界更多国家优秀影片，满足市场需求。（央视新闻） 外交部：中方将 ...

智通财经4月10日电，普拉达同意将以13.75亿美元收购范思哲。 ...

Financial Performance - The company reported strong revenue and profit growth driven by brand appeal and strict execution, achieving solid performance and progress in 2024 [11]. - The net revenue for the year ended December 31, 2024, was €2,977 million, an increase of 16.6% from €2,552 million in the previous year [19]. - Gross profit increased by €296 million, representing a growth of 17.1%, with the gross margin rising to 68.2% from 67.9% [19]. - Net income for the year was €850 million, accounting for 28.5% of net revenue, compared to €567 million or 22.2% in the previous year [21]. - The total equity of the company was €3,325 million as of December 31, 2024, compared to €2,843 million in the previous year [25]. - The company received €170.5 million in dividends during the year, a significant increase from €24.6 million in the previous year [23]. - Total revenue for 2024 reached €2,976,971,031, an increase of 16.6% compared to €2,552,340,867 in 2023 [129]. - Net income for 2024 was €849,706,977, up 50% from €566,740,484 in 2023 [129]. - Operating income (EBIT) improved to €1,006,739,864, reflecting a growth of 18.4% from €850,198,747 in the previous year [129]. - Cash and cash equivalents increased significantly to €601,742,739 from €225,027,603, marking a growth of 167% [128]. Sustainability and Corporate Responsibility - The company continues to execute its sustainability strategy, focusing on climate change and investing in green energy [16]. - The company is committed to biodiversity and has expanded its efforts to understand the impact of its procurement on biodiversity [16]. - The company is focusing on sustainable development strategies, including greenhouse gas reduction and the use of low-impact materials in products and packaging [46]. - The company has identified and established mid-term goals and internal key performance indicators (KPIs) to monitor progress, particularly in carbon reduction and material transition [47]. - The company emphasizes compliance with labor laws and ethical standards throughout its supply chain, ensuring adherence through monitoring and inspections [42]. Digital Transformation and Innovation - The company is advancing its digital transformation plan to enhance technical capabilities across various activities [15]. - The company emphasizes continuous innovation through research and development, focusing on new or improved materials and design concepts [59]. - The company participated in the 37th America's Cup and established a groundbreaking partnership with NASA for spacesuit design, showcasing its technical expertise and innovation [11]. Governance and Board Structure - The board consists of 11 members, including 6 executive directors and 5 independent non-executive directors, with female representation at approximately 45% [72]. - The board's diversity policy emphasizes that diversity should not be limited to gender, reflecting a broader commitment to inclusivity [72]. - The board evaluates operational and financial performance, including annual budgets and quarterly results, during its meetings [74]. - The company has established a code of ethics and governance policies in accordance with Italian law, ensuring adherence to legal and regulatory requirements [90]. - The board confirmed the effectiveness of the internal control and risk management system throughout 2024, with no significant deficiencies found [111]. Risk Management - The company has established a risk management system to manage, forecast, and mitigate risk exposures for long-term sustainable business development [33]. - The company manages credit risk through a control system based on customer reputation and debt repayment ability, with no significant risk identified in current assets [48]. - The company faces foreign exchange risk due to its extensive international presence and manages this risk through derivative contracts to hedge future cash flows [51]. - The company uses derivative instruments to hedge interest rate risk by converting floating-rate debt into fixed-rate debt [52]. Shareholder Communication and Dividends - The company aims to provide sustainable dividends while considering financial performance, cash flow, and operational needs [122]. - The company maintains high transparency in communication with shareholders and the financial community, holding regular briefings and meetings [123]. - The company’s annual general meeting in 2024 was held online, with all resolutions presented to shareholders being formally passed [125]. Financial Compliance and Audit - The independent financial statements are audited by Deloitte & Touche S.p.A., with external auditors appointed every three years [64]. - The total audit fees for Deloitte & Touche S.p.A. for the year ending December 31, 2024, are €550,000, an increase of 7% from €514,000 for the year ending December 31, 2023 [94]. - The company has implemented strict anti-corruption policies and auditor independence measures to support compliance with laws and regulations [109]. Employee and Talent Management - The company emphasizes talent management and retention through training programs and performance management processes [36]. - The company’s compensation policy aims to attract and retain talent, with a focus on competitive remuneration linked to performance and business objectives [97]. - The compensation structure includes fixed, variable, direct, and deferred components, tailored to different roles and regions [98]. Market and Brand Development - The leather goods category saw significant growth, with new products being well-received and classic styles continuing to sell well [11]. - The Miu Miu brand continues to attract audiences with its disruptive aesthetics and has launched exclusive collaborations that resonate widely [12]. - The Church's brand has shown positive growth momentum due to strategic efforts over the past few years [14].

Financial Performance - Prada Group achieved a net revenue increase of 17% to €5.4 billion, marking the fourth consecutive year of double-digit growth[11]. - Net sales for the year ended December 31, 2024, reached €5,310,026 thousand, representing a 14.9% increase from €4,622,882 thousand in 2023[113]. - Operating income (EBIT) increased by 20.5% to €1,279,550 thousand, compared to €1,061,692 thousand in the previous year[113]. - Net income for the year was €843,400 thousand, a 25.2% increase from €673,392 thousand in 2023[113]. - The gross profit margin decreased slightly to 79.8% from 80.4% in the previous year, despite an increase in gross profit of €534,921 thousand[113]. - Retail sales net revenue increased by 15.7% to €4,849,208 thousand, with Miu Miu showing a remarkable growth of 93.2%[121]. - The operating cash flow for 2024 was €1,212,784 thousand, significantly higher than €725,596 thousand in 2023[121]. - The company's equity attributable to shareholders rose to €4,399,365 thousand from €3,853,795 thousand in the previous year[121]. - The net financial surplus increased to €599,602 thousand, compared to €196,908 thousand in 2023[121]. - The company reported a net revenue of €843.4 million for the year ending December 31, 2024, representing a 15.5% increase compared to €673.4 million in the previous year[181]. Retail and Market Expansion - Retail sales grew by 18% year-over-year, driven by strong performance in full-price sales[11]. - The company has completed approximately 90 renovation and reset projects in its retail network during the year, enhancing customer experience[118]. - The number of stores operated by the group reached 609 after opening 38 new stores and closing 35 during the year[122]. - Prada operates 609 directly operated stores globally, with a significant presence in Europe, Asia-Pacific, and the Americas[14]. - The Asia-Pacific region accounted for 33.1% of retail sales net revenue, totaling €1,604,413 thousand, with a growth of 10.9%[121]. - The Group is expanding its market presence with the opening of the first Prada Caffè in London, enhancing its brand experience[60]. Strategic Investments and Development - The company has deployed nearly €500 million in strategic investments across retail, industrial plans, and technology[11]. - The Group's new knitting factory in Torgiano (Umbria) is part of its strategy to enhance production capabilities[57]. - The Torgiano center expansion is set to open in May 2024, reflecting the company's commitment to innovative and efficient operations[119]. - Prada Group aims for sustainable growth above market levels despite ongoing industry complexities, focusing on investments in retail, industrial strength, and technology[190]. Sustainability and Ethical Practices - Prada Group has committed to sustainability by implementing a zero-fur policy across all brands and launching a collection made from recycled nylon[51]. - The sustainable development strategy is built on three pillars: Earth, People, and Culture, aiming to reduce environmental impact and promote inclusivity[83]. - The company emphasizes the importance of employee well-being and diversity, fostering an inclusive culture[85]. - The company has established a sustainability strategy focusing on greenhouse gas reduction and the use of environmentally friendly materials[166]. - Prada Group's commitment to sustainability includes science-based greenhouse gas reduction targets and the use of low-impact materials[84]. Leadership and Governance - The Group's leadership transition includes Andrea Guerra as CEO, implementing a new ethical code and human rights policy across the organization[53]. - Patrizio Bertelli has been appointed as the Chairman of the Board since April 24, 2024, and previously served as Co-CEO until January 26, 2023[195]. - Miuccia Prada has been re-elected as Executive Director on April 24, 2024, and has played a significant role in establishing Prada as a leading luxury brand[197]. - Paolo Zannoni has been serving as Executive Vice Chairman since May 11, 2023, and has extensive experience in investment banking and corporate governance[200]. Innovation and Cultural Engagement - Prada's strategic vision emphasizes cultural engagement and the creation of a continuously evolving language to interpret contemporary fashion[12]. - The Group's brands continue to focus on increasing brand value and attractiveness in the luxury market[63]. - Prada Group's Luna Rossa sailing team won the Prada Cup for the second time, showcasing the brand's commitment to sports and innovation[55]. - The company has streamlined its distribution network, focusing on high-quality partnerships and targeted strategies[79]. - Prada Group has been supporting the Prada Foundation's interdisciplinary activities since 1993, focusing on cultural and artistic initiatives[92]. Risk Management - The company actively combats counterfeiting through legal actions and preventive measures, including global brand registration and RFID technology for product authenticity[149]. - The company faces various risks that could disrupt operations, including geopolitical tensions and extreme weather events, potentially leading to economic losses such as decreased sales and increased labor costs[162]. - Credit risk is primarily associated with trade receivables from wholesale channels and business partners, managed through diversification and monitoring of counterparties[168]. - The company has established a tax risk management system to enhance its tax control framework, allowing it to join the Italian tax authority's compliance regime[175].

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of 82.62 HKD based on a 2025 PE of 25X [2][9]. Core Insights - Miu Miu's retail revenue surged by 93% in 2024, with EBIT margin reaching a 10-year high. Overall revenue increased by 14.9% YoY to 5.43 billion Euros, while net profit rose by 25% YoY to 839 million Euros [2][9]. - The company is expected to continue its strong growth trajectory, with net profit forecasts of 972 million Euros in 2025, 1.088 billion Euros in 2026, and 1.191 billion Euros in 2027, reflecting growth rates of 15.9%, 11.9%, and 9.5% respectively [2][9]. Financial Data Summary - **Revenue Forecast**: - 2023: 4.726 billion Euros - 2024: 5.432 billion Euros (YoY +14.9%) - 2025E: 6.059 billion Euros (YoY +11.5%) - 2026E: 6.646 billion Euros (YoY +9.7%) - 2027E: 7.207 billion Euros (YoY +8.4%) [2][6] - **Net Profit Forecast**: - 2023: 671 million Euros - 2024: 839 million Euros (YoY +25.0%) - 2025E: 972 million Euros (YoY +15.9%) - 2026E: 1.088 billion Euros (YoY +11.9%) - 2027E: 1.191 billion Euros (YoY +9.5%) [2][6] - **EPS Forecast**: - 2023: 0.26 Euros - 2024: 0.33 Euros - 2025E: 0.38 Euros - 2026E: 0.43 Euros - 2027E: 0.47 Euros [2][6] - **Gross Margin**: - 2024: 79.84% - 2025E: 79.80% - 2026E: 79.90% - 2027E: 80.00% [2][6] - **Return on Equity**: - 2024: 19.07% - 2025E: 19.84% - 2026E: 19.93% - 2027E: 19.63% [2][6] Retail Performance Summary - Miu Miu's total channel revenue increased by 82.9% YoY to 1.38 billion Euros, with a significant rise in direct retail efficiency [2][9]. - The company plans to optimize its retail network, with a focus on expanding Miu Miu into new markets while controlling general and administrative expenses [2][9]. - Retail revenue growth in 2024 was notable across regions, with Japan leading at 46% YoY growth, followed by the Middle East at 26% [2][9].