Tianfeng Securities released a research report stating that Prada (01913) had a revenue of 2.55 billion euros and net income of 0.38 billion euros in the first half of 24H1, a YoY increase of 17.4% and 25.7% respectively (fixed exchange rate). The growth in revenue was mainly due to full-price sales and YoY increase in sales volume.
Among them, the retail sales of Miu Miu performed well in 24H1, with a YoY increase of 92.7%, achieving strong growth in all regions and product categories. Miu Miu continues to shine with its highly acclaimed fashion shows and exciting events, and its community enthusiasm remains high. All categories of the brand have received extremely positive commercial feedback, and the brand's attractiveness has been enhanced through influential promotional activities such as new leather goods campaigns. Miu Miu Upcycled and other special projects and successful collaborations continue to bring sustained attention to the brand.
The bank believes that considering the sustained increase in Miu Miu's brand strength and the high-quality development of Prada's brand, coupled with the company's digital development and further strengthening of the supply chain, the bank has raised its profit forecast. It is expected that the total revenue for 24-26 will be 5.11 billion euros, 5.53 billion euros, and 6 billion euros; net income will be 0.75 billion euros, 0.85 billion euros, and 0.93 billion euros (original values were 0.74 billion euros, 0.8 billion euros, and 0.87 billion euros); EPS will be 0.29 euros/share, 0.33 euros/share, and 0.36 euros/share (original values were 0.29 euros/share, 0.31 euros/share, and 0.34 euros/share); corresponding PEs will be 23, 21, and 19x. The bank has raised its rating to "buy".