Citi: Prada (01913) The Prada brand regains momentum in the second quarter and maintains a “neutral” rating

The Zhitong Finance App learned that Citi released a research report saying that same-store sales of the Prada brand under Prada (01913) improved in the second quarter, and the shares are expected to respond positively. The Group's second-quarter sales reached 1.62 billion euros, about 3% higher than market expectations. After excluding Versace, organic growth was 7%, which is faster than 3% in the first quarter; among them, wholesale increased 21%, Prada retail grew 6%, and Miu Miu retail grew 3%. Citi believes that the market anticipates that there will be room for a low unit percentage increase, maintain a “neutral” rating, and target price of HK$38.

Citi pointed out that the Prada brand had the strongest performance in leather goods, followed by ready-to-wear lines (men's and women's), while footwear declined slightly year over year; Miu Miu's growth in all categories was more balanced. By country, Chinese customers grew in double digits year on year, Japanese and European customers remained flat, and North American customers increased by double digits year on year.

Currently, the market generally expects Prada's sales to reach 6.42 billion euros in fiscal year 2026, an organic increase of 4%, EBIT is expected to reach 1.25 billion euros, and the EBIT profit margin will shrink by 370 basis points to 19.4% year on year.