Prada S.p.A. (OTCPK:PRDSY) Sales Call April 24, 2024 8:00 AM ET Company Participants Andrea Guerra - Chief Executive Officer and Executive Director Andrea Bonini - Chief Financial Officer Conference Call Participants Chris Huang - UBS Edouard Aubin - Morgan Stanley Chiara Battistini - JPMorgan Melania Grippo - BNP Paribas Erwan Rambourg - HSBC Louise Singlehurst - Goldman Sachs Thomas Chauvet - Citi Charles Louis Scotti - Kepler Cheuvreux Liwei Hou - CICC Chris Gao - CLSA Operator Good day, and thank you fo ...

Summary of Prada S.p.A. Q1 2024 Revenue Update Conference Call Company Overview - **Company**: Prada S.p.A. (OTCPK:PRDSY) - **Date of Call**: April 24, 2024 - **Participants**: CEO Andrea Guerra, CFO Andrea Bonini, and various analysts from major financial institutions Key Points Industry and Market Trends - 2024 is expected to show different market trends compared to previous years, emphasizing brand positioning and desirability [4] - The luxury goods market is experiencing a shift, with a focus on creativity and cultural influence [4] Financial Performance - **Total Group Retail Growth**: 18% in Q1 2024, driven by like-for-like sales [4] - **Net Revenues**: €1.187 billion, up 16% at constant FX compared to Q1 2023 [7] - **Retail Sales Growth**: - Prada brand: +7% [8] - Miu Miu brand: +89% [5][8] - **Geographical Performance**: - Asia-Pacific: +16% [9] - Europe: +18% [9] - Americas: +5% [9] - Japan: +46% [9] - Middle East: +15% [9] Brand Performance - **Prada**: Maintained strong desirability and cultural relevance, with growth across all product categories and geographies [4][8] - **Miu Miu**: Significant growth trajectory, regaining its position in the industry, with a balanced product category mix [5][8] Consumer Trends - Chinese consumers showed low double-digit growth in Q1, with a notable increase in spending abroad [16][37] - European consumers exhibited mid-single-digit growth, while North American consumers remained flat [16][37] Future Outlook - The company is optimistic about continued growth, with a focus on retail execution and consumer engagement [10] - Plans for modest store expansions in 2025: 10-15 new stores for Miu Miu and 5-10 for Prada [27] Investment and Infrastructure - Continued investment in brand desirability, marketing, and digital infrastructure is prioritized [28][29] - Focus on verticalization of brand organizations and improving operational efficiencies [28][29] E-commerce and Retail Metrics - E-commerce contribution is around 10% of total sales, returning to pre-COVID growth trajectories [64] - Miu Miu's retail metrics show improvements in store traffic, conversion rates, and customer retention [64] Challenges and Considerations - The company acknowledges the need for careful management of growth to avoid the pitfalls of being overly fashion-driven [48] - The dual listing remains on the agenda but is not a current priority due to other strategic focuses [54] Additional Insights - The performance of leather goods has been strong, with a noted increase in the share of iconic products [46][50] - The company is actively monitoring consumer behavior and adjusting strategies accordingly, particularly in response to tourism trends [33][34] This summary encapsulates the key insights and financial performance metrics discussed during the Prada S.p.A. Q1 2024 revenue update conference call, highlighting the company's strategic direction and market positioning.

Financial Data and Key Metrics Changes - Net revenues reached €4.7 billion, up 17% at constant exchange rates compared to fiscal year 2022 [10][50] - EBIT margin improved to 22.5% of revenues, up from 20.1% in fiscal year 2022 [26][51] - Net income increased by 44% to €671 million [27][28] - CapEx for fiscal year 2023 was €753 million, including a strategic real estate acquisition [27][28] Business Line Data and Key Metrics Changes - Retail sales increased by 17% year-on-year, driven by full price like-for-like sales [20][21] - Miu Miu reported outstanding performance with a 58% year-on-year growth, accelerating to 82% in Q4 [53][54] - Ready-to-wear was the fastest-growing category at 31%, followed by footwear at 18% and leather goods at 8% [54] Market Data and Key Metrics Changes - Asia-Pacific saw strong growth of 24% year-on-year, while Europe grew by 14% [23][24] - The Americas ended the year flat, with a slight improvement in Q4 [10][56] - Japan was the best-performing region, up 44% for the year [56] Company Strategy and Development Direction - The company aims to continue enhancing brand desirability through innovative products and marketing strategies [4][6] - Focus on retail excellence and selective wholesale approach to drive profitability [15][52] - Continued investment in sustainability initiatives, including a 58% reduction in Scope 1 and 2 greenhouse gas emissions [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining above-market growth rates despite potential challenges in 2024 [30][63] - The company anticipates a more linear growth path in 2024, with ongoing investments in innovation and product development [30][32] - Management noted the importance of adapting to changing consumer behaviors and market dynamics [16][30] Other Important Information - The company completed around 130 renovation and relocation projects, accounting for 80% of total retail CapEx [59] - The group retains a solid balance sheet with a net cash position of €197 million at the end of 2023 [28] Q&A Session All Questions and Answers Question: Insights on the beginning of the year and Chinese spending trends - Management noted that Chinese spending is recovering, with individual travelers becoming more prominent compared to group travel [66][72] Question: Contribution of price to sales and outlet strategy - Management confirmed that the contribution from factory outlets is now less than 10% and emphasized the strategic decision to close these outlets [71][72] Question: Performance of Miu Miu and its growth management - Management highlighted Miu Miu's growth as a result of a long-term strategy and emphasized the importance of maintaining a balanced approach to avoid overheating the brand [85][122] Question: Outlook for the US market and store openings - Management expressed optimism for the US market, indicating it could be a leading growth area in the coming years, with plans for strategic store openings [128][133] Question: Leather goods performance and consumer response - Management acknowledged strong consumer response to leather goods initiatives and emphasized the importance of balancing new launches with iconic products [140][147]

Financial Performance - Prada Group's net revenues reached €4.726 billion, a 17% increase at constant exchange rates compared to FY-22[6, 48] - Retail sales grew by 17% at constant exchange rates, driven by full-price like-for-like sales[68] - The EBIT margin improved to 22.5%, resulting in an EBIT of €1.062 billion[6, 48, 92] - Net income increased by 44% to €671 million[75, 92] - The Board of Directors proposed a dividend per share of €0.137, totaling €351 million, representing approximately 52% pay-out ratio[98] Brand Performance - Prada brand sales increased by 12% at constant exchange rates[6, 70] - Miu Miu brand sales saw a significant increase of 58% at constant exchange rates[6, 70] Regional Performance - Asia Pacific retail sales increased by 24% at constant exchange rates[73] - Europe retail sales increased by 14% at constant exchange rates[73] - Japan retail sales showed outstanding growth of 44% at constant exchange rates[73] - Americas retail sales remained flat[57, 73, 90] ESG Initiatives - The company achieved a 58% reduction in Scope 1 & 2 GHG emissions compared to the 2019 baseline[24] - Over 75% of leather and textile suppliers are involved in the ZDHC program[40] - 63% of the total workforce are women[42]

Prada, the designer fashion brand, saw its profits soar 44% higher in 2023, highlighting the luxury sector’s strong performance last year. Profits at the Italian group jumped to €671 million in the 2023 financial year, driven in part by the “exceptional momentum” of its Miu Miu brand. Sales at the bag and shoe brand rose 58% year-on-year, Prada revealed. Patrizio Bertelli, Prada chairman, said: “We are pleased with the strong results achieved in 2023, underpinned by our brands’ desirability. “The Group deli ...

Although Fifth Avenue in Midtown reigns as the world’s priciest-to-rent shopping corridor with sidewalk-level stores charging $2,000 per square foot, according to Cushman & Wakefield, there soon might not be anywhere left to rent.That’s because retailers are rapidly buying the buildings that are home to their glamorous stores. It happened again this week with news that Prada is grabbing a second building on the “world’s greatest shopping street” — 720 Fifth Ave. at East 56th Street, next door to 724 Fifth, ...

Prada S.p.A. (OTCPK:PRDSY) Q3 2023 Earnings Conference Call October 31, 2023 6:30 PM ET Company Participants Andrea Bonini - CFO Andrea Guerra - Group CEO Conference Call Participants Susy Tibaldi - UBS Erwan Rambourg - HSBC Edouard Aubin - Morgan Stanley Thomas Chauvet - Citi Research Luca Solca - Bernstein Melania Grippo - BNP Paribas Louise Singlehurst - Goldman Sachs Thierry Cota - Societe Generale Liwei Hou - CICC Chris Gao - CLSA Andrea Bonini Good afternoon, everyone, and thank you for joining the Pr ...

Financial Performance - The Group's net revenues reached €2.232 billion, a 20% increase at constant exchange rates compared to H1-22[8, 20] - Retail sales amounted to €2.0 billion, reflecting a 21% growth at constant exchange rates[8] - The EBIT margin improved to 22.0%, translating to €491 million[8, 20] - Net income increased by 62% to €305 million[35] Brand Performance - Prada retail sales grew by 18% at constant exchange rates, reaching €1.668 billion[26] - Miu Miu retail sales experienced a significant acceleration, growing by 50% at constant exchange rates to €285 million[26] Channel Performance - Retail channel revenue was €1.975 billion, up 21% at constant exchange rates[24] - Wholesale channel revenue increased by 9% at constant exchange rates, reaching €210 million[24] - Royalties revenue showed strong growth of 66% at constant exchange rates, reaching €47 million[24] Geographical Performance - Asia Pacific retail sales increased by 25% at constant exchange rates, reaching €716 million[29] - Europe retail sales grew by 24% at constant exchange rates, reaching €582 million[29] - Americas retail sales decreased by 1% at constant exchange rates, totaling €361 million[29] Capital Expenditure - The company accelerated its capital expenditure plan, investing €151 million[8]

Prada S.p.A. (OTCPK:PRDSY) Q2 2023 Earnings Conference Call July 27, 2023 8:15 AM ET Company Participants Andrea Bonini - CFO Patrizio Bertelli - Chairman of the Board and Executive Director Andrea Guerra - Group CEO Lorenzo Bertelli - Marketing Director and Head of CSR. Conference Call Participants Susy Tibaldi - UBS Thomas Chauvet - Citi Research Edouard Aubin - Morgan Stanley Aurelie Husson-Dumoutier - HSBC Luca Solca - Bernstein Antoine Belge - BNP Paribas Louise Singlehurst - Goldman Sachs Liwei Hou - ...

Prada S.p.A. (OTCPK:PRDSY) Q4 2022 Earnings Conference Call March 9, 2023 8:00 AM ET Company Participants Andrea Bonini - Chief Financial Officer Patrizio Bertelli - CEO & Founder Lorenzo Bertelli - Marketing Director and Head of CSR Andrea Guerra - CEO Conference Call Participants Susy Tibaldi - UBS Thomas Chauvet - Citi Edouard Aubin - Morgan Stanley Melania Grippo - BNP Paribas Exane Paola Carboni - Equita SIM Chris Gao - CLSA Liwei Hou - CICC Operator Good day and thank you for standing by. Welcome to t ...