According to the report released by Lyon, Prada (01913.HK) is expected to announce its interim performance on the 30th of this month, with sales in the second quarter expected to increase by 12% annually based on fixed exchange rates, and retail sales of the Prada and Miu Miu brands are expected to increase by 5% and 60% annually based on fixed exchange rates, respectively. In terms of regional classification, the bank expects the Japanese market to perform the strongest.

The bank expects the company's mid-term operating profit margin to improve by 20 basis points annually to 22.2%, benefiting from positive operating leverage, but partially offset by the impact of exchange rates and raw material costs on gross profit margins. The bank expects the operating leverage effect in the second half of the year to be more significant, bringing a 1 percentage point improvement in cost optimization and resilient sales.

The bank raised its sales and net profit forecasts for the company this year by 2% and 3%, respectively, maintained its "outperform" rating on the stock, and preferred the company to outperform its peers this year. The target price was lowered from 69 yuan to 65 yuan, reflecting weak sentiment, and the target EV / EBIT multiple was also lowered to 14 times.