UBS: Prada's (01913) results beat expectations for the second quarter, focus on whether the third quarter's performance can continue

The Zhitong Finance App learned that UBS released a research report saying that Prada (01913) organic sales increased 7% in the second quarter, better than market expectations of about 3%, mainly due to the Prada brand's retail and wholesale business performance exceeding expectations. Retail sales of the Prada brand increased 6% year over year, exceeding market expectations by about 3%. However, the bank believes that the second quarter's performance alone is not enough to drastically change the current investment view. If market sentiment is to improve markedly, the Prada brand's recovery will need to continue until the second half of the year, so if strong performance continues in the third quarter, it is expected that investors will raise and potentially revalue the company's profit forecasts. As retail sales momentum beat expectations, UBS raised Prada's 2026-2028 earnings forecast per share by up to 1%, maintaining a “neutral” rating. The target price was raised from HK$39.1 to HK$39.5.