Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company is expected to maintain stable performance despite high base effects, with currency fluctuations potentially causing short-term profit disturbances. The expansion of Miu Miu and the consolidation of Versace are anticipated to contribute new revenue streams in 2026. The overall customer base remains robust as the industry transitions into a new normal [2][11]. Financial Summary - Total revenue projections (in million euros) are as follows: - 2024A: 5,432 - 2025E: 5,716 (+5.2%) - 2026E: 6,162 (+7.8%) - 2027E: 6,640 (+7.8%) [4] - Gross profit estimates (in million euros): - 2024A: 4,337 - 2025E: 4,573 - 2026E: 4,935 - 2027E: 5,325 [4] - Net profit attributable to shareholders (in million euros): - 2024A: 839 - 2025E: 882 (+5.2%) - 2026E: 959 (+8.7%) - 2027E: 1,046 (+9.0%) [4] Market Outlook - The company is expected to achieve a retail sales growth of approximately high single digits in 2025, leading the industry. The retail growth rate for Q4 2025 is projected to be in the mid-single digits, slightly slowing from Q3. Miu Miu's retail growth rate for Q4 2025 is expected to be between 15-20% [11]. - The company plans to expand Miu Miu's retail space by 10%-15%, focusing on the Eurasian region and further penetrating the U.S. market by 2027. Prada aims to balance its strategic price points while enhancing its product offerings to attract both mass and high-net-worth customers [11]. Valuation Metrics - The company is projected to have a Price-to-Earnings (PE) ratio of: - 2025E: 20X - 2026E: 14.88 - 2027E: 13.65 [11] - The Price-to-Book (PB) ratio is expected to decrease from 3.24 in 2024A to 2.42 in 2027E [4].

Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company has shown steady performance despite high base effects, with currency fluctuations potentially causing short-term profit disturbances. The expansion of Miu Miu continues in 2026, and the consolidation of Versace will contribute new revenue streams. The overall customer base remains stable, and the industry is entering a new normal [2][11]. Financial Summary - Total revenue is projected to reach €5,432 million in 2024, with a growth rate of 14.9%. By 2027, revenue is expected to increase to €6,640 million, maintaining a growth rate of 7.8% [4]. - Gross profit is forecasted to be €4,337 million in 2024, increasing to €5,325 million by 2027, with a consistent gross margin around 80% [4][15]. - Net profit attributable to shareholders is expected to grow from €839 million in 2024 to €1,046 million in 2027, reflecting a growth rate of 25.0% in 2024 and around 9.0% in 2027 [4][15]. Market Outlook - The company anticipates a retail sales growth of approximately high single digits for the full year 2025 at constant exchange rates, leading the industry. The retail growth for Q4 2025 is expected to be in the mid-single digits, slightly slowing from Q3 [11]. - Miu Miu is projected to contribute an additional 10%-15% in retail space, focusing on the Eurasian region, with plans to expand into the low-penetration U.S. market by 2027 [11]. - The luxury goods industry is shifting from rapid growth to a "new normal," characterized by market share consolidation among strong brand DNA companies [11].