Ge Long Hui·2025-08-06 03:16Core Viewpoint - Citigroup's research report indicates that Prada's revenue growth has slowed to single digits (6%) in the latest quarter, with the Prada brand experiencing negative growth for the first time since 2020, while Miu Miu shows better-than-peer performance despite gradual normalization [1] Group 1: Financial Performance - Prada's revenue growth has decreased to 6%, marking a significant slowdown [1] - The Prada brand has recorded negative growth for the first time since 2020 [1] - Miu Miu's performance is improving but still outpaces its competitors [1] Group 2: Investment Needs - The company requires substantial investments in advertising, promotions, production, IT infrastructure, and the expansion of Miu Miu's retail network, which may limit further profit margin expansion [1] Group 3: Financial Forecast Adjustments - Sales, EBIT, and earnings per share forecasts for 2025 have been reduced by 2%, 2%, and 4% respectively, and for 2026 by 3%, 5%, and 6% respectively [1] - The target price has been lowered from HKD 52.3 to HKD 45.5, maintaining a "neutral" rating [1]