Investment Rating - The investment rating for the company has been upgraded to "Buy" with a target price set above the current price of 57.65 HKD [7][5]. Core Insights - Miu Miu has shown strong growth with a retail sales increase of 92.7% year-on-year, supported by successful fashion shows and impactful marketing campaigns [2]. - Prada has achieved high-quality development with a retail sales growth of 5.5%, benefiting from a balanced product mix and strong performance in challenging markets [3]. - The company has accelerated its retail upgrades and strengthened its supply chain, completing 36 renovation projects and expanding its digital capabilities [4]. Financial Performance - For the first half of 2024, the company reported revenues of 2.55 billion euros, a year-on-year increase of 17.4%, and a net profit of 380 million euros, up 25.7% [1]. - Retail sales net revenue increased by 18.2%, while wholesale sales grew by 7.8%, driven by the duty-free channel [1]. - The company expects full-year revenues for 2024-2026 to be 5.11 billion euros, 5.53 billion euros, and 6.00 billion euros respectively, with net profits projected at 750 million euros, 850 million euros, and 930 million euros [5]. Regional Performance - Retail sales in Japan, the Middle East, Europe, Asia Pacific, and the Americas grew by 55%, 20%, 18%, 12%, and 7% respectively [1]. - Japan has emerged as the best-performing region, benefiting from robust demand and strong tourist flows [1]. Strategic Developments - The company has committed to enhancing customer experience through digital upgrades and supply chain improvements, with capital expenditures of 0.15 million euros and 0.32 million euros for industrial and IT projects respectively [4]. - The expansion of a key knitwear production facility is expected to create 214 new jobs [4].

Investment Rating - The investment rating for Prada is upgraded to "Buy" with a target price reflecting an expected return of over 20% within the next six months [6]. Core Insights - Prada reported a revenue of €2.55 billion for the first half of 2024, representing a year-on-year increase of 17.4%, with net profit rising by 25.7% to €380 million [1]. - Miu Miu's retail sales surged by 92.7% year-on-year, showcasing strong growth across all regions and product categories [2]. - The company is focusing on digital development and supply chain enhancements, with capital expenditures of €0.15 million and €0.32 million for industrial and IT projects, respectively [4]. - The revenue forecasts for 2024-2026 have been raised, with expected revenues of €5.11 billion, €5.53 billion, and €6.00 billion, and net profits of €750 million, €850 million, and €930 million for the respective years [5]. Summary by Sections Financial Performance - In the first half of 2024, Prada's retail sales increased by 5.5%, driven by full-price sales and volume growth, with all product categories and menswear achieving growth [3]. - Retail sales net revenue grew by 18.2% in the retail channel and 7.8% in the wholesale channel, supported by duty-free stores [1]. Regional Performance - Retail sales in Japan, the Middle East, Europe, Asia Pacific, and the Americas grew by 55%, 20%, 18%, 12%, and 7% respectively [1]. - Japan emerged as the best-performing region, benefiting from robust demand and strong tourist flows [1]. Brand Development - Miu Miu's brand strength continues to rise, supported by successful fashion shows and impactful marketing campaigns [2]. - Prada maintains a balanced product mix, with new and classic items supporting leather goods, while creative initiatives drive the growth of ready-to-wear and footwear [3]. Retail and Supply Chain Enhancements - The company completed 36 renovation and reset projects in the first half of 2024, demonstrating its commitment to enhancing customer experience [4]. - As of June 30, 2024, Prada operated 593 directly managed stores after opening 9 and closing 22 [4].

Revenue and Sales Performance - Prada Group recorded net revenue of 2,549 million euros, a 17% increase compared to the same period in 2023 at constant exchange rates[2] - Retail sales net revenue increased by 18% at constant exchange rates compared to the same period in 2023[2] - Prada brand and Miu Miu retail sales net revenue increased by 6% and 93% respectively at constant exchange rates[2] - Double-digit growth was recorded in the following regions at constant exchange rates: Japan +55%, Middle East +20%, Europe +18%, and Asia Pacific +12%[2] - Prada Group's net revenue increased by 17.4% at constant exchange rates compared to the first half of 2023, driven by full-price and like-for-like sales[9] - Prada's retail sales grew by 5.5%, while Miu Miu's retail sales surged by 92.7% during the period, with strong performance across all categories and regions[9] - Net sales increased by 13.9% to €2,487.8 million, with a gross margin of 79.8%[12] - Total net revenue increased by 14.2% to €2,548.6 million, with retail sales (directly operated stores and e-commerce) contributing 88.8% of the total revenue, growing by 14.6% to €2,262.6 million[17] - Miu Miu's retail sales surged by 85.9% to €530.1 million, significantly outperforming other brands and contributing 23.4% of total retail sales[17] - Japan's retail sales grew by 38.0% to €308.6 million, representing 13.6% of total retail sales, with a fixed exchange rate growth of 55.0%[17] - Retail sales in Europe grew by 17.2% to €682.2 million, contributing 30.2% of total retail sales, with a fixed exchange rate growth of 18.3%[17] - The Asia-Pacific region accounted for 34.2% of retail sales, with net sales increasing by 8.2% to €774.4 million, and a fixed exchange rate growth of 12.0%[17] - Prada Group's net revenue for the first six months of 2024 reached 2,548.6 million euros, a 17.4% increase year-over-year, with retail sales contributing 88.8% of total net revenue[41] - Miu Miu's retail sales surged by 92.7% year-over-year, driven by strong growth across all regions and product categories[42] - Japan was the top-performing region with a 55% increase in retail sales, supported by strong local demand and tourism[42] - Prada's retail sales grew by 5.5% year-over-year, with growth across all product categories and regions, including China and other Asia-Pacific countries[42] Profitability and Financial Performance - EBIT was 575 million euros, representing 22.6% of net revenue, a 17% increase compared to the same period in 2023[2] - Net income for the group was 383 million euros, a 26% increase compared to the same period in 2023[2] - The Group's EBIT margin improved to 22.6%, with a net cash position of €265 million at the end of the period[9] - Net income attributable to the Group rose by 25.7% to €383.5 million, with a net income margin of 15.0%[12] - The Group's operating income (EBIT) for the period was 575.1 million euros, representing 22.6% of net revenue, up from 491.4 million euros (22% of net revenue) in the same period last year[43] - Net income for the first six months of 2024 was 385.7 million euros, accounting for 15.1% of net revenue, compared to 306.6 million euros (13.7% of net revenue) in the previous year[45] - The Group's gross margin stood at 79.8% of net revenue, slightly down from 80.3% in the same period last year, but stable when excluding currency effects[43] Cash Flow and Financial Position - As of June 30, 2024, the net financial position was positive at 265 million euros[2] - Operating cash flow net of lease liabilities was 580.5 million euros, compared to 181.8 million euros in the same period in 2023[7] - Net invested capital, including right-of-use assets, was 5,825.3 million euros as of June 30, 2024[8] - Cash and cash equivalents decreased from €689.5 million to €661.3 million, a decline of 4.1%[13] - Trade receivables (net) decreased from €405.2 million to €378.7 million, a decline of 6.5%[13] - Inventory (net) increased from €783.0 million to €864.4 million, a growth of 10.4%[13] - Total current assets increased slightly from €2,162.7 million to €2,175.4 million, a growth of 0.6%[13] - Property, plant, and equipment increased from €2,032.9 million to €2,076.9 million, a growth of 2.2%[13] - Total non-current assets increased from €5,452.3 million to €5,565.1 million, a growth of 2.1%[13] - Total liabilities increased from €3,738.2 million to €3,803.2 million, a growth of 1.7%[13] - Net income attributable to equity holders of the company decreased from €671.0 million to €383.5 million, a decline of 42.8%[13] - Total equity increased from €3,876.8 million to €3,937.2 million, a growth of 1.6%[13] - Other reserves increased from €2,833.9 million to €3,162.4 million, a growth of 11.6%[13] - Operating cash flow increased by 20.9% to €871.1 million, driven by higher pre-tax income of €537.0 million, up 20.7% from the previous year[15] - Net cash flow from operating activities rose to €799.3 million, a significant increase from €393.5 million in the same period last year[15] - Capital expenditures for property, plant, and equipment, as well as intangible assets, increased by 22.6% to €182.9 million[15] - The company paid dividends of €331.1 million to Prada S.p.A. shareholders, up 24.1% from the previous year[15] - Total comprehensive income for the period reached €408.1 million, with the group's share at €405.6 million, up 36.0% year-over-year[16] - Net trade receivables decreased to €378.7 million as of June 30, 2024, from €405.2 million as of December 31, 2023[21] - Inventory increased to €864.4 million as of June 30, 2024, up from €783.0 million as of December 31, 2023, primarily due to supporting sales growth[23] - Provisions for obsolete and slow-moving inventory increased by €17.2 million in the first half of 2024, allocated to slow-moving products and raw materials[23] - Other current assets totaled €253.7 million as of June 30, 2024, compared to €267.4 million as of December 31, 2023[26] - Capital expenditures for property, plant, and equipment totaled €137.0 million, with significant additions in leasehold improvements (€46.9 million) and furniture and fixtures (€15.4 million) due to retail property remodeling and store resets[27] - Intangible assets increased by €31.7 million, primarily driven by software additions (€5.6 million) and in-progress assets (€25.6 million) related to retail and industrial projects[28] - Goodwill remained stable at €515.5 million, allocated to cash-generating units: Prada (€424.3 million) and Miu Miu (€91.2 million), with no impairment indicators reported[29][30] - Right-of-use assets increased by €47.3 million, mainly due to new leases and remeasurements totaling €265.4 million, offset by depreciation of €220.4 million[31] - Trade payables increased to €463.3 million, with 91.0% of payables (€421.6 million) not overdue as of June 30, 2024[35][36] - Other current liabilities decreased to €273.1 million, driven by a reduction in capital expenditure payables (€76.4 million) and other payables (€163.8 million)[38] - Net invested capital increased to 5,825 million euros as of June 30, 2024, compared to 5,791 million euros at the end of 2023[46] - Right-of-use assets increased by 47.3 million euros, primarily due to new leases and remeasurement of existing leases totaling 265.4 million euros[47] - Operating working capital increased by 45.1 million euros to 779.9 million euros as of June 30, 2024, driven by an 81.4 million euro increase in inventory[49] - Net financial position improved to 265.4 million euros as of June 30, 2024, compared to 196.9 million euros at the end of 2023[46] - Lease liabilities increased to 2,153 million euros as of June 30, 2024, up from 2,111 million euros at the end of 2023, mainly due to lease contract extensions and modifications[53] - Capital expenditures for the period amounted to 168.7 million euros, with depreciation, amortization, and impairments totaling 136.8 million euros[47] - Free cash flow for the six-month period was 396.1 million euros, a significant increase from 32.8 million euros in the same period of 2023[51] - The company secured a new 800 million euro sustainability-linked revolving credit facility in April 2024, replacing the previous 400 million euro facility[51] - Total available credit lines increased to 1,252 million euros as of June 30, 2024, up from 768 million euros at the end of 2023[52] - Net financial debt, including lease liabilities, decreased to 1,888 million euros as of June 30, 2024, from 1,914 million euros at the end of 2023[54] Store Operations and Expansion - The group operates 593 directly operated stores globally as of June 30, 2024[3] - The Group completed 36 store renovations and relocations, opened 9 new stores, and closed 22 stores, resulting in a total of 593 directly operated stores[10] - Total number of stores decreased to 593 directly operated stores and 24 franchised stores as of June 30, 2024, compared to 606 directly operated stores and 25 franchised stores as of December 31, 2023[18] - The Group operated 593 stores as of June 30, 2024, after opening 9 new stores and closing 22 during the period[41] Brand Performance and Initiatives - Prada's creative initiatives and collaborations, such as the reinterpretation of the Galleria bag and the Re-Nylon collection, contributed to its strong performance[10] - Miu Miu's success was driven by acclaimed fashion shows, impactful campaigns like the new leather goods campaign, and special projects like Miu Miu Upcycled[10] Sustainability and ESG - The Group strengthened its climate strategy, focusing on lower-impact materials, reducing Scope 3 emissions, and enhancing supply chain governance[10] - The Sustainability Committee held two meetings in 2024 with 100% attendance to report on ESG progress and approve the 2023 Sustainability Report[64] - The company established a new Diversity, Equity, and Inclusion (DEI) Executive Committee and governance structure in the USA[65] Corporate Governance - The Board of Directors consists of 11 members, including 6 executive directors and 5 independent non-executive directors[58] - The Audit and Risk Committee held three meetings during the review period with an attendance rate of 77.78%[60] - The Remuneration Committee reviewed and recommended the total base remuneration for the Board with a 100% attendance rate[61] - The Nomination Committee held two meetings with a 66.67% attendance rate to verify the independence of independent non-executive directors and recommend board structure[63] - The company adheres to the highest standards of corporate governance to create long-term sustainable value for stakeholders[56] - The company's corporate governance model complies with Italian laws and Hong Kong Stock Exchange Listing Rules[56] - The Board reviewed and confirmed that corporate governance practices complied with the Code, except for one minor exception[57] - The Board of Directors appointed new members to the Sustainability Committee for a three-year term ending in 2026[64] - The Statutory Auditors Committee held four meetings during the review period and appointed new members for a three-year term ending in 2026[66] - The "Organismo di Vigilanza" (Supervisory Body) was appointed for a three-year term ending in 2026 to ensure compliance with Italian regulations[67] - No dividends were declared or paid during the review period, except for the final dividend for 2023[69] - The company confirmed no violations of securities trading rules by directors or employees during the review period[70] - No repurchase, sale, or redemption of the company's listed securities occurred during the review period[71] - The interim financial results were published on the Hong Kong Stock Exchange and the company's website[71] Dividends and Shareholder Returns - The company proposed a final dividend of €0.137 per share for 2023, totaling €350,558,888, which was approved and paid in May 2024[69] - Dividends paid during the six months ended June 30, 2024, amounted to €350.6 million, with a per-share dividend of €0.137[20] Risk and Provisions - The Group's total risk and expense provisions at the end of June 2024 were 55.4 million euros, with other risk provisions accounting for 54.4 million euros, primarily related to lease restoration obligations[39][40] - Tax disputes with the Italian tax authority involve potential adjustments of 10.8 million euros for 2016 and 9.8 million euros for 2017, plus interest[40] Management and Strategic Focus - Management is satisfied with the company's performance in the first half of the year despite increasing industry and geopolitical complexities[55] - The company's primary focus in the coming months is to enhance brand appeal, drive customer engagement, and accelerate retail excellence[55] - The company remains committed to achieving robust, sustainable, and above-market growth[55]

Investment Rating - The report initiates coverage with an "Accumulate" rating for Prada [3]. Core Viewpoints - Prada Group is a global leader in the luxury goods industry, with a diverse portfolio of renowned brands that redefine contemporary luxury [8][12]. - The company achieved a revenue of €4.726 billion in 2023, representing a 12.5% year-on-year increase, and a net profit of €671 million, up 44.3% [12]. - The luxury goods market is experiencing a "Matthew Effect," where top brands are gaining more market share, particularly in the context of declining overall consumer sentiment [2][21]. Summary by Sections 1. Global Leader in Luxury Goods - Prada Group is recognized as a global leader in the luxury goods sector, owning multiple prestigious brands such as Prada, Miu Miu, and Church's [8]. - The company operates 26 owned factories and employs over 14,800 staff, distributing products through 606 direct stores and e-commerce channels across 70 countries [9]. 2. Market Expansion and Brand Advantage - The luxury market is maturing, with Chinese consumers driving significant growth. The Chinese luxury market expanded from $15 billion in 2011 to $41 billion in 2021, with a CAGR of 11.4% [19]. - The report highlights that in 2023, Chinese luxury consumption rebounded to ¥1.042 trillion, returning to pre-pandemic levels [19]. - The report notes that 17 companies in the global top 100 luxury brands contribute approximately 70% of total sales, emphasizing the concentration of market power among leading brands [21]. 3. Financial Performance and Forecast - The company has shown consistent revenue growth from €3.226 billion in 2019 to €4.726 billion in 2023, with a CAGR of 10.02% [12]. - The report forecasts revenues for 2024-2026 to be €5.106 billion, €5.525 billion, and €6.001 billion, respectively, with net profits projected at €736 million, €800 million, and €873 million [2]. 4. Brand Performance - Prada brand revenue grew from €2.643 billion in 2019 to €3.912 billion in 2023, with a CAGR of 10.3% [15]. - Miu Miu's revenue increased significantly, from €450 million in 2019 to €753 million in 2023, reflecting a CAGR of 13.7% [15]. - Church's brand revenue showed a decline, with a net income decrease of 14.7% in 2023 [15]. 5. Regional Performance - The Asia-Pacific region is the largest contributor to sales, with revenues growing from €1.018 billion in 2019 to €1.446 billion in 2023, a CAGR of 9.2% [16]. - European revenues increased from €1.228 billion in 2019 to €1.312 billion in 2023, with a CAGR of 1.7% [16]. - The Americas region saw revenues rise from €455 million in 2019 to €767 million in 2023, with a CAGR of 13.9% [16]. 6. Innovation and Craftsmanship - The company emphasizes innovation and craftsmanship, maintaining high-quality standards through exclusive materials and strict production processes [25][26]. - Prada's commitment to preserving its heritage and enhancing its production capabilities is evident in its investment in training and development [26].

Financial Performance - Prada Group reported a net revenue of €1,187.2 million for the three months ended March 31, 2024, representing a 16.5% increase compared to the same period in 2023[4]. - Retail sales net revenue increased by 17.9% year-over-year, accounting for 90% of total net revenue, consistent with the previous year[4]. - Licensing revenue grew by 21.8%, driven by contributions from eyewear and fragrance categories[4]. Brand Performance - Retail sales net revenue for the Prada brand grew by 6.5%, while Miu Miu saw a significant increase of 89.4%[4]. Regional Performance - The Asia-Pacific region experienced a 15.7% increase in retail sales net revenue, driven by the lifting of COVID-19 restrictions[4]. - European retail sales net revenue rose by 18.1%, supported by local and tourist spending[4]. - The Americas recorded a 5% increase in retail sales net revenue, showing slight improvement compared to Q4 2023[4]. - Japan was the standout region with a 45.6% increase in retail sales net revenue, fueled by strong local consumption and rising tourist activity[4]. - The Middle East also saw a recovery with a 15% increase in retail sales net revenue[4]. Store Operations - The company opened 4 new stores and closed 16, resulting in a total of 594 operational stores as of March 31, 2024[4].

Financial Performance - The net revenue for the year ended December 31, 2023, was €2,552 million, an increase of 1.7% compared to €2,509 million in the previous year[13]. - Gross profit margin increased to 67.9%, up from 67.0% in the previous year, reflecting a growth of €53 million[14]. - EBIT decreased to €850 million, representing 33.3% of net revenue, down from 38.6% in the previous year due to increased operating expenses[14]. - Operating expenses rose to €882 million, accounting for 34.6% of net revenue, primarily due to increased marketing activities and personnel costs[14]. - The company reported a net income distribution of €350,558,888.00 as a final dividend, equating to €0.137 per share, and €216,181,596.21 retained in earnings for the year ending December 31, 2023[39]. - Net income for the year was €566,740,484, down from €571,683,175 in 2022, representing a decrease of about 0.8%[95]. - The company paid dividends totaling €281,471,000 in 2023, an increase from €179,118,000 in 2022, reflecting a commitment to returning value to shareholders[96]. Strategic Initiatives - The company reported significant progress in strategy, organization, and digital development, reflecting the resilience of the luxury goods sector[9]. - Prada's strategic initiatives are aimed at enhancing customer experience and expanding market presence through unique offerings and collaborations[9]. - The company continues to focus on digital transformation initiatives to support operational and revenue growth, including omnichannel capabilities and ERP integration[12]. - The company has established a risk management system to manage, forecast, and mitigate risk exposures, ensuring long-term sustainable business development[25]. - The company is committed to maintaining high standards of corporate governance to create long-term sustainable value for stakeholders[41]. Sustainability Efforts - The company achieved a 58% reduction in Scope 1 and 2 greenhouse gas emissions compared to the 2019 baseline[12]. - The company is actively promoting a culture of sustainability through internal and external initiatives, such as Sea Beyond and Forestami Academy[33]. - The company has established a clear roadmap for its sustainability strategy, focusing on greenhouse gas reduction and the use of low-impact materials[1]. - The company is focusing on mid-term goals and internal KPIs to monitor progress, particularly in reducing carbon emissions and transitioning to environmentally friendly materials[33]. Corporate Governance - The board consists of 11 directors, with 6 executive and 5 independent non-executive directors, and approximately 36% of the board members are women[44]. - The company has established written procedures regulating securities trading by directors and employees with insider information, ensuring compliance with standard codes[43]. - The board held six meetings in 2023 to discuss corporate strategy, evaluate financial performance, and approve major investments, with an average attendance rate of 83.33%[48]. - The company emphasizes the importance of corporate culture as a foundation for long-term business success and sustainable growth[52]. - The board's composition includes family relationships, with Miuccia Prada Bianchi and Patrizio Bertelli being spouses, and their son Lorenzo Bertelli also serving as an executive director[57]. Risk Management - The company faces risks related to employee health and safety, product quality, and environmental regulations, which could impact financial status and reputation[1]. - The company manages credit risk through monitoring customer creditworthiness and implementing insurance contracts[34]. - The company employs derivatives like interest rate swaps to mitigate interest rate risks affecting future cash flows[35]. - The company has established credit risk management strategies to monitor and verify customer reliability and repayment capacity[166]. Investments and Acquisitions - The company acquired a minority stake in Italian family business Luigi Fedeli e Figlio S.r.l., known for high-quality knitwear, demonstrating commitment to protecting Italian craftsmanship[12]. - The company invested €390 million in Prada USA Corp for the acquisition of a strategically valuable real estate asset located at 724, 5th Avenue, New York, which currently houses a Prada store[19]. - The company completed several mergers in 2023, including the integration of Church's brands into Prada entities, enhancing operational synergies[135]. - Investments in subsidiaries and associates rose to €1,312,798,000 as of December 31, 2023, compared to €793,436,000 in the previous year, indicating significant growth in investment value[198]. Financial Position - The company’s total equity as of December 31, 2023, was €2,842 million, an increase from €2,563 million in the previous year[16]. - The company’s net financial position showed a surplus of €65.7 million, down from €389.8 million in the previous year[16]. - The debt-to-equity ratio improved to -2.1% from -15.5% in the previous year, indicating a stronger financial position[16]. - As of December 31, 2023, total assets increased to €4,746,880,745, up from €4,631,226,949 in the previous year, representing a growth of approximately 2.5%[92]. Operational Highlights - The company emphasized strict execution and optimized organization as key factors in maintaining brand appeal and global visibility[9]. - The balanced product category mix contributed to growth and stability, driven by successful fashion shows and collections[9]. - The company invested €113,447,000 in property, plant, and equipment in 2023, compared to €88,904,000 in 2022, indicating an increase in capital expenditures[96]. - The company has established specific teams to manage real estate activities, ensuring strategic retail locations are secured and maintained[29]. Market and Customer Engagement - Prada successfully launched exclusive collaborations, including the "Adidas Football for Prada" collection and a partnership with Axiom Space for NASA's Artemis III mission[9]. - The brand hosted a series of impactful events, such as Prada Extends in Bangkok and the Pradasphere II exhibition in Shanghai, enhancing global brand experience[9]. - Prada's innovative approach and ability to interpret contemporary trends have been pivotal in driving sales and customer engagement[9]. - The company invests in regular store renovations and employee training programs to improve customer experience and brand image[28].

Financial Performance - Prada Group achieved revenue of €4.7 billion, representing a growth of +17% at constant exchange rates[12]. - Retail sales amounted to €4.2 billion, also reflecting a +17% increase at constant exchange rates[12]. - EBIT reached €1.062 billion with an EBIT margin of 22.5%, showing a +37% increase at current exchange rates[12]. - Net income for the group was €671 million, marking a +44% growth at current exchange rates[12]. - The company reported a net operating cash flow of €726 million[12]. - Prada Group's net sales reached €4,726,411 thousand for the year ending December 31, 2023, representing a 12.5% increase from €4,200,674 thousand in 2022[70]. - The adjusted EBIT for the year was €1,061,692 thousand, accounting for 22.5% of net sales, up from 20.1% in the previous year[72]. - The net income attributable to the group was €671,026 thousand, a 44.2% increase from €465,193 thousand in 2022[70]. - The company reported a significant increase in operating cash flow, with a net amount of €725,596 thousand compared to €695,527 thousand in the previous year[72]. - The group’s gross profit margin improved to 80.4%, compared to 78.8% in the previous year, reflecting effective cost management[70]. - The company achieved continuous retail growth for 12 consecutive quarters, driven by full-price and year-on-year sales increases[74]. Retail and Market Expansion - The group operates 606 directly operated stores across over 70 countries[15]. - Prada's retail sales for the brand increased by +12%, while Miu Miu saw a significant growth of +58%[8]. - The company opened 26 new stores and closed 32 stores, ending the year with a total of 606 directly operated stores[76]. - The Asia-Pacific region saw retail sales net amount rise by 17.4% to €1,446,146 thousand, up from €1,231,659 thousand[79]. - Retail sales in the Asia-Pacific region increased by 24%, with Japan showing the highest growth at 43.8%[85]. - The company completed approximately 130 renovation and reset projects in its retail network during the year[76]. Sustainability and Ethical Practices - Sustainability remains a core part of the company's strategy, aiming to be a "driver of change" in various business aspects[10]. - The sustainability strategy is built on three pillars: Earth, People, and Culture, aiming to reduce environmental impact and promote diversity[55]. - The company has set greenhouse gas reduction targets recognized by the Science Based Targets initiative (SBTi) for scopes 1, 2, and 3[55]. - Prada Group's mission is to drive change for the planet, people, and culture, integrating sustainability into its core business strategy[20]. - The group has adopted a zero-fur policy across all brands and joined the Fashion Pact, reinforcing its commitment to ethical practices[34]. - In 2023, Prada launched its first jewelry collection made from 100% certified recycled gold, emphasizing its focus on sustainability[35]. - The company has made significant progress in environmental sustainability, reducing Scope 1 and 2 greenhouse gas emissions by 58% compared to the 2019 baseline[77]. - The company has invested in sustainable aviation fuel (SAF) credits to accelerate decarbonization in the aviation sector[77]. Corporate Governance and Leadership - Prada Group's board of directors includes Patrizio Bertelli as Chairman and CEO, alongside other executive members, ensuring strong leadership and governance[65]. - The board of directors consists of eleven members, including six executive directors and five independent non-executive directors[128]. - The board is committed to maintaining a strong governance structure with a mix of experienced executives and independent directors[128]. - The company emphasizes the importance of cultural and sporting interests in its brand identity and business strategy[128]. - The board's diversity policy emphasizes that diversity should not be limited to gender, reflecting a broader commitment to inclusivity[194]. - The company has established a comprehensive audit plan and sustainability report for the fiscal year 2023[198]. Strategic Initiatives and Future Outlook - Future strategies will focus on expanding the retail network and enhancing operational excellence[9]. - The company continues to explore opportunities for growth through potential mergers and acquisitions in the luxury sector[60]. - Prada Group's strategic focus includes enhancing its brand presence through new product development and market expansion initiatives[60]. - The company aims to enhance brand appeal and retail performance in 2024, despite geopolitical and macroeconomic uncertainties[126]. - Future product development and technological advancements are key priorities for the company to maintain competitive advantage[138]. Employee and Talent Management - The company has a total of 14,876 employees as of December 31, 2023, with 40% located in Italy and 63% of the workforce being female[155]. - Prada Group's significant investment in employee training and development aims to preserve craftsmanship and foster new talent[56]. - The company emphasizes talent retention and development through training programs and performance management processes to ensure operational quality[103]. Financial Management and Risk - The company manages credit risk through monitoring customer creditworthiness and debt repayment ability, and has implemented various preventive measures to enhance cash management efficiency[111]. - The company faces liquidity risk, which is managed by the board and the finance director, ensuring that financial resources are optimized to meet financial obligations[112]. - The company has implemented a risk management system to address various risks, including those related to the rapidly changing luxury goods industry and brand appeal[100]. - The company has established a tax risk management system that includes ongoing dialogue with tax authorities in the countries where it operates, aiming to minimize potential uncertainties related to tax risks[114]. Shareholder and Financial Structure - The group proposed a final dividend of €350,558,888 for the fiscal year 2023, equating to €0.137 per share, subject to shareholder approval[159]. - As of December 31, 2023, the distributable reserves available for shareholders amount to €1,951.7 million[159]. - The company has no current plans for the purchase, sale, or redemption of its listed securities during the fiscal year 2023[159]. - The company’s total lease liabilities amounted to €2,110.9 million, slightly increasing from €2,107.6 million in 2022[94].

M N 8 Mar 2024 CMB International Global Markets | Equity Research | Company Update Prada SpA (1913 HK) 4Q23 cFX revenue +18%; Miu Miu overshot 4Q results were a beat to us and consensus, with the quarter’s net revenue Target Price HK$65.2 expanding by cFX +18.1%. The strength was mainly driven by 82% growth in Miu (Previous TP HK$64.5) Miu (vs CMBIe 50%+). All regions marked robust growth, especially Japan (cFX Up/Downside 17.1% +38%) and APAC (cFX +32%), when the US continued to record sequential Current P ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 Prada S.p.A. （股份代號：1913） 截 至 二 零 二 三 年 十 二 月 三 十 一 日 止 十 二 個 月 期 間 的 綜 合 業 績 公 告 - Prada集團錄得收益淨額4,726.4百萬歐元，按固定匯率計，較二零二二年增 加17.2%。 - 相比二零二二年，零售銷售淨額按固定匯率計增加17.2%。 - Prada品牌及Miu Miu的零售銷售淨額按固定匯率計分別增加12.1%及58.2%。 - 以下地區錄得雙位數增長（均按固定匯率計）：日本+43.8%，亞太區+24%， ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 PRADA S.p.A. （股份代號：1913） 截 至 二 零 二 三 年 九 月 三 十 日 止 九 個 月 的 未 經 審 核 收 益 公 告 - Prada集團錄得收益淨額3,343.6百萬歐元，按固定匯率計，較二零二二年九 個月增加16.8%； ...