The company released FY24Q3 financial data

Prada FY24Q3 (2024.7.1-9.30) revenue also increased 18% (fixed exchange rate, same below), with retail revenue up 18%, wholesale revenue up 11%, and royalties 16%; of these, retail revenue by brand, Prada's revenue increased 2% and MiuMiU revenue increased 105%; retail revenue by region, Asia Pacific revenue increased 12%, European revenue increased 18%, and American revenue increased 10%;

Prada's FY24Q1-3 (2024.1.1-9.30) revenue was 3.83 billion euros, up 18% (fixed exchange rate, same below), with retail revenue of 3.4 billion up 18%, wholesale revenue 0.3 billion up 9%, and royalty 0.09 billion up 24%;

Among them, retail revenue was divided by brand. Prada's revenue of 2.5 billion increased by 4%, and MiuMiU's revenue of 0.85 billion increased by 97% in Europe;

Retail revenue was divided by region. The revenue of the Asia-Pacific region increased by 12% by 1.1 billion, the European revenue by 18% by 1.1 billion, and the revenue of the Americas increased by 8% with 0.58 billion.

Miu Miu's community enthusiasm continues to soar through acclaimed fashion shows and engaging events, and the brand continues to shine. The brand received an extremely positive commercial response in all categories, and the brand's appeal was enhanced through influential communication initiatives such as a new leather goods promotion campaign.

Special projects such as Miu Miu Upcycled and successful collaborations have brought continued attention to the brand. Furthermore, with Miu Miu's launch of the first literary club “Writing Life” (Writing Life) and the launch of Miu Miu's Summer Reads (Summer Reads), Miu Miu's unique ideas continue to promote contemporary cultural discussions and inspire the global community.

Raise profit forecasts and maintain “buy” ratings

Considering the continuous improvement of the Miu Miu brand power and the high-quality development of the Prada brand, and the further strengthening of the company's digital development and supply chain, we raised our profit forecast. We expect revenue for the full year of 24-26 to be 5.5 billion euros, 6.3 billion euros, and 7.3 billion euros respectively (original values of 5.11 billion euros, 5.53 billion euros, and 6 billion euros, respectively); net profit is 0.82 billion euros, respectively, 0.95 billion euros, 1.09 billion euros (original values 0.75 billion euros, 0.85 billion euros, 0.93 billion euros, respectively);

EPS was €0.32 per share, €0.37 per share, €0.42 per share (original values were €0.29 per share, €0.33 per share, and €0.36 per share, respectively);

Corresponding PE is 21, 18, and 16X, respectively.

Risk warning: Brand development falls short of expectations, loss of core executives, decline in gross margin, etc.