Zhi Tong Cai Jing·2025-10-24 07:07Core 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]