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]

Group 1 - Prada's stock opened up by 7.63% following the announcement of its acquisition of Versace for $1.375 billion [1]

Market Overview - US stock indices collectively declined, with the Nasdaq falling by 4.31%, S&P 500 down by 3.46%, and Dow Jones dropping by 1014.79 points, a decrease of 2.5% [4] - Major tech stocks also fell significantly, with Tesla down over 7%, Meta down over 6%, and Nvidia, Amazon, Apple, Google, and Microsoft all experiencing declines of more than 2% [4] - The Nasdaq Golden Dragon China Index decreased by 1.14%, with most Chinese concept stocks declining, while Li Auto and Xpeng Motors saw gains of over 5% and 3%, respectively [4] Economic Indicators - The US Consumer Price Index (CPI) for March showed a year-on-year increase of 2.4%, below the expected 2.6% and down from the previous 2.8% [4] - Month-on-month, the CPI decreased by 0.1%, contrasting with the expected increase of 0.1% and the previous increase of 0.2% [4] Commodity Market - Gold prices surged, with spot gold rising by 3.02% to $3175.03 per ounce, marking a new historical high, while COMEX gold futures increased by 3.73% to $3194.2 per ounce [5] - International oil prices saw significant declines, with WTI crude oil down by 3.40% to $60.23 per barrel and Brent crude down by 2.93% to $63.56 per barrel [5] Corporate Developments - CATL has been approved for listing on the Hong Kong Stock Exchange, which is expected to enhance its international visibility and support overseas business expansion [16][17] - IFBH Limited, a leading coconut water brand, has submitted an IPO application to list on the Hong Kong Stock Exchange, aiming to expand its market share [18][19] - Prada announced plans to acquire Versace for approximately $1.375 billion, which will strengthen its position in the fashion industry [20][21] - Anta Sports plans to fully acquire Jack Wolfskin for $290 million, aiming to expand its outdoor equipment market presence [22] - JD.com is launching a significant subsidy program for its food delivery service, investing over $1 billion to enhance market competitiveness [24][25] Regulatory and Policy Updates - The Chinese government is encouraging private enterprises to participate in the construction of new toll road mechanisms through various investment methods [9] - The State Administration of Foreign Exchange expressed confidence in the resilience of China's economic fundamentals and foreign exchange market, anticipating a stable outlook [8] International Relations - A study from Yale University indicated that tariffs could cost American households an average of $4,400, with the effective tariff rate reaching 25.3%, the highest since 1909 [13] - The US State Department announced the resignation of the US Ambassador to Ukraine, amid ongoing geopolitical tensions [13]

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。 ...

Core Viewpoint - Prada is considering a takeover of Versace, with negotiations entering a final phase and a potential announcement expected soon [1][4]. Group 1: Deal Details - A potential deal to acquire Versace, currently owned by Capri Holdings, could be announced on Thursday, with the price possibly reduced to 1 billion euros ($1.1 billion), which is one-third lower than initial estimates [2]. - Capri Holdings' CEO John Idol is expected to visit Milan to discuss the deal, indicating active engagement in the negotiations [3]. - Prada had exclusive access to Versace's financial data for four weeks starting in late February, which has since been extended, suggesting thorough due diligence [3]. Group 2: Company Background - Versace was acquired by Capri Holdings for 1.8 billion euros in 2018 but has been operating at a loss recently [6]. - Donatella Versace recently stepped down as chief creative officer, with Dario Vitale, a former Miu Miu designer, taking over the role [6].

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].