Core Insights - Morgan Stanley's report indicates that Prada's sales in Q3 this year grew by 8.5% at constant exchange rates, slightly above market consensus [1] - Retail sales met market expectations with a year-on-year growth of 7.6%, driven primarily by the volatile wholesale channel [1] - Prada remains one of the fastest-growing groups this fiscal quarter, with growth rates nearly comparable to Hermès, significantly outpacing French luxury giants LVMH and Kering [1] - However, market reaction is expected to be relatively muted, as Prada's revenue barely meets market expectations, unlike most peers [1] Financial Projections - Morgan Stanley has revised its revenue growth forecast for the group in 2025 down to 6.6% from an original estimate of 8.5% [1] - The EBIT margin is expected to remain at 23.4% [1] - Earnings per share forecasts for the fiscal years 2025 to 2026 have been reduced by 0.6% [1] - The target price is maintained at HKD 53 [1]

Core Viewpoint - UBS reports that Prada's third-quarter sales exceeded expectations, with total sales of €1.33 billion and an organic sales growth (OSG) of 9%, both surpassing market consensus [1] Group 1: Sales Performance - Prada's total sales for the third quarter reached €1.33 billion [1] - The organic sales growth (OSG) for the same period was 9%, indicating strong performance [1] Group 2: Market Position and Outlook - Despite the strong third-quarter sales, the growth momentum in retail for Prada is considered moderate compared to peers that have reported results [1] - UBS does not expect this performance to significantly boost investor sentiment in the short term [1] Group 3: Investment Rating - UBS maintains a 12-month target price for Prada at HK$74 and rates the stock as "Buy" [1]

Core Viewpoint - Prada's stock price increased by over 4% in early trading, reaching 51.25 HKD with a trading volume of 60.2555 million HKD [1] Group 1 - The stock price of Prada (01913.HK) rose by 4% as of the report time [1] - The current trading price is 51.25 HKD [1] - The total trading volume recorded is 60.2555 million HKD [1]

Core Viewpoint - Prada's retail sales for Q3 2025 met market expectations, showing a year-on-year growth of 7.6% at constant exchange rates, with the Prada and Miu Miu brands performing in line with expectations [1] Sales Performance - Prada's retail sales decreased by 0.8% year-on-year, while Miu Miu's sales increased by 29% year-on-year [1] - Over a two-year period, both brands demonstrated stable quarterly performance, with Prada's core brand showing a year-on-year growth of 1% in both Q2 and Q3 of this year, and Miu Miu showing significant growth of 136% and 134% respectively [1] Market Insights - The Chinese market for Prada's core brand is still experiencing negative growth, but there has been a quarter-on-quarter improvement in Q3 [1] - Positive growth was observed in the Americas, Europe, and Japan, driven by strong local demand and slightly improved tourism demand [1] - Management believes that the worst period in China has passed, and sales have continued to improve since October [1] Future Outlook - The management cautioned that the fourth quarter will be challenging due to tough comparisons, and the last six weeks of the year will be crucial for performance [1]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Insights - The Prada Group has conducted a revenue update for the first nine months of 2025, indicating a focus on financial performance and strategic direction [1]. Group Overview - Andrea Bonini serves as the CFO and Executive Director, while Andrea Guerra is the Group CEO, highlighting the leadership structure during the presentation [1]. Financial Performance - The presentation aims to provide insights into the company's revenue performance, although specific financial figures and growth percentages are not detailed in the provided text [1].

Company Update - Prada Group reported a 3Q25 revenue update with a year-on-year growth of +9% at constant exchange rates (CER), or +4% at reported exchange rates, reaching €1.33 billion, slightly above FactSet consensus estimate of €1.31 billion [1] - Retail revenue for 3Q25 showed a decline in Prada brand revenue (-1%) but improved compared to 2Q25 (-4%), while Miu Miu brand revenue grew by +29% despite a high year-on-year base (3Q24: +105%) [1] - In the Asia-Pacific region excluding Japan, revenue grew by +10%, with improved sales trends in mainland China, while the Americas saw a +20% growth, accelerating from +14% in 2Q25 [1] - For the first nine months of 2025, group revenue increased by +9%, driven by same-store full-price sales, with limited contribution from retail space expansion, impacted by approximately 260 basis points of foreign exchange headwinds [1] Comments - The company has ample room for revenue growth and margin expansion through category expansion, including jewelry and beauty products, which are still in early growth stages for both Prada and Miu Miu [1] - Continuous innovation in leather goods, particularly for Miu Miu, may lead to potential best-selling products [1] - Store network upgrades are focused on creating high-specification, high-efficiency flagship stores while streamlining long-tail stores [1] - Caution is advised regarding changes in the competitive landscape, as new designer products from brands like Dior, Chanel, Gucci, and Celine are set to launch in 1H26 [1] Profit Forecast and Valuation - Due to foreign exchange headwinds, revenue and EBIT forecasts for 2025 have been reduced by 6.1% and 6.9% to €5.731 billion and €1.359 billion, respectively [2] - The net profit forecast for 2025 has been lowered by 7.5% to €880 million, reflecting higher financial costs associated with additional loans from the Versace acquisition [1][2] - For 2026, revenue forecasts have been cut by 9.6% to €6.155 billion, with EBIT and net profit forecasts reduced by 13.2% and 14.1% to €1.492 billion and €976 million, respectively, due to increased competition and rising costs [2] - The valuation has shifted to be based on the 2026 net profit forecast, maintaining an outperform rating and a target price of HKD 75, corresponding to a 21.1x 2026 P/E ratio, with a 62.0% upside potential from the current stock price [2]

Group 1 - Morgan Stanley reported that Prada's sales in Q3 increased by 8.5% at constant exchange rates, slightly above market consensus, with retail sales growth of 7.6% aligning with expectations, driven primarily by the volatile wholesale channel [1] - Prada remains one of the fastest-growing groups, with growth rates nearly comparable to Hermès, significantly outpacing French luxury giants LVMH and Kering [1] - Morgan Stanley has lowered its earnings per share forecast for Prada for FY2025-2026 by 0.6% but maintains a target price of HKD 53, while keeping a "market perform" rating due to observed investment opportunities in the luxury sector [1] Group 2 - Market reaction to Prada's results is expected to be muted, as the company's revenue barely meets market expectations, leading to a forecast of price range fluctuations in the coming days or months [1] - Three main concerns are highlighted: increased competition in the creative field with the influx of new creative directors, potential loss of Miu Miu's competitive edge as a brand that has innovated and provided differentiated products [1] - A shift in fashion trends from minimalism to maximalism may disadvantage both Prada and Miu Miu, as more elaborate brands like Gucci gain popularity [1] Group 3 - The acquisition of Versace is projected to dilute the group's profit margins for at least the next few years, with estimated operating losses of EUR 150 million in FY2026 and EUR 120 million in FY2027, indicating minimal profit growth for the group [2] - Morgan Stanley has revised its revenue growth forecast for the group in 2025 down to 6.6% from an original 8.5%, while maintaining an EBITDA margin of 23.4% [2] - By brand, Prada's revenue is expected to decline by 1.3% year-on-year in Q4, while Miu Miu's revenue growth forecast is slightly adjusted down to 30% [2]

Core Insights - Morgan Stanley reports that Prada's Q3 sales increased by 8.5% at constant exchange rates, slightly above market consensus, with retail sales growth of 7.6% aligning with expectations, driven primarily by the volatile wholesale channel [1] - Prada remains one of the fastest-growing groups, nearly matching Hermès' growth rate and significantly outpacing LVMH and Kering [1] - Morgan Stanley has lowered its earnings per share forecast for Prada for FY 2025-2026 by 0.6% but maintains a target price of HKD 53, while keeping a "market perform" rating due to observed investment opportunities in the luxury sector [1] Financial Performance - The forecast for Prada's revenue growth for 2025 has been revised down to 6.6% from an original estimate of 8.5%, with an expected EBITDA margin of 23.4% [2] - Prada's brand revenue is projected to decline by 1.3% year-on-year in Q4, while Miu Miu's revenue growth is slightly adjusted to 30% [2] Market Concerns - Market reaction to Prada's performance is expected to be muted, as its revenue only "barely" meets market expectations, leading to anticipated price fluctuations in the coming days or months [1] - Three main concerns are highlighted: increased competition in the creative field with the influx of new creative directors, potential disadvantages for Prada and Miu Miu as fashion trends shift from minimalism to maximalism, and the dilution of group profit margins due to the acquisition of Versace, which is projected to incur significant operating losses in the coming years [1][2]

Core Viewpoint - Prada's retail sales for Q3 this year largely met market expectations, showing a year-on-year growth of 7.6% when calculated at constant exchange rates [1] Group 1: Sales Performance - Retail sales for the Prada and Miu Miu brands were in line with market expectations, with Prada experiencing a year-on-year decline of 0.8% and Miu Miu showing a year-on-year increase of 29% [1] - Over a two-year period, both brands demonstrated stable quarterly performance, with Prada's core brand growing by 1% in both Q2 and Q3 of this year, while Miu Miu grew by 136% and 134% respectively [1] Group 2: Market Analysis - The Chinese market for Prada's core brand is still experiencing negative growth, but there was a sequential improvement in Q3 [1] - Positive growth was recorded in the Americas, Europe, and Japan, driven by strong local demand and slightly improved tourism demand [1] Group 3: Future Outlook - Sales have continued to improve since October, but management indicated that the fourth quarter will face tough comparisons, with the last six weeks being crucial [1] - Citi maintains a target price of HKD 50 for Prada and a "outperform" rating, noting that Prada is still expanding its market share, but its valuation appears low at 26 times enterprise value/EBITDA, representing a 53% discount compared to industry averages [1]