Event in Progress:
Discover the latest content that has just been published on Research Tree
Prada reported Q3 23 revenues slightly above the consensus and our expectations. The moderate growth in Europe and ongoing softer demand in the US were offset by strong tourist spending in Asia. Although in terms of top-line growth, the solid momentum of Miu Miu offset the normalization of Prada, the profitability of Miu Miu continues to lag that of Prada which, together with the increased investment in the brands, could weigh on margins in H2 23.
Companies: Prada S.p.A.
AlphaValue
Prada published stronger-than-expected profitability for the first half despite a slight top-line miss. A strong recovery in Greater China and solid momentum in Europe and Japan were offset by softer growth in the Americas. Improved brand desirability continued to lead to a favourable average price movement and increased scale, resulting in better margin generation. Although the group will continue to invest in digitalization and A&P for the rest of the year, it wishes to maintain the curren
Prada recorded a strong year in FY22 despite the challenging trading environment in China. Prada’s enduring brand popularity led sustained strong demand and better pricing power. The favourable price/channel mix resulted in stronger-than-expected profitability. The gross margin reached 78.8%, ahead of the mid-term target set in 2021. We believe the recovery in China and a higher contribution from elevated product will continue to boost the group’s top-line and margin in the new year.
Prada published an impressive set of H1 22 figures, with both the top-line and operating profit above consensus and our expectations. The impressive performance in the Americas and the strong rebound in Europe both offset the weakness in China. The increased average price and favourable channel mix drove the gross margin up to 77.7% in the first half. The encouraging margin expansion has increased our confidence for the mid-term.
Prada released its FY21 figures with revenue in line with consensus and EBIT 18% above consensus and our expectations. The significantly increased brand heat and better channel /product mix have resulted in a very encouraging margin acceleration in H2 21. The group has confirmed its mid-term goals despite the uncertain trading environment related to the Russian-Ukraine conflict.
Like its larger industry peers, Prada reported an expectation-beating set of H1 21 results. On top of the strong top-line momentum, Prada’s strong brand heat has enabled the group to significantly increase full-price sales and elevate products (more premium). Favourable channel and product mixes resulted in a strong gross margin improvement (74.3% vs. 71.7% in H1 19). The group is confident that it can deliver a 74.5% of gross margin for FY21.
After reporting a negative EBIT of €-196m in H1 20, Prada has experienced an impressive recovery in H2 20, which led the group to finish the year with a positive EBIT of €20m, beating consensus and our expectations. The favourable country mix and price increases, along with accelerated e-commerce penetration have boosted profitability by 10bp in FY20 despite the pandemic. Prada’s rekindled brand appeal and strong commercial capacity are keeping our positive view on the group’s mid-long-term ou
Prada posted flat sales at constant rates in H1. The operating margin was cut by 170bp and the operating profit was down 13%. Growth was moderate in Europe, flat in America and negative in other regions.
Sales momentum slowed in H2 and closed the year up 6% at local currency. Trading conditions were tough in Hong Kong and Macau. Fewer tourists in Europe and America have deepened the slow down. Margins were much lower than expected.
Prada is finally back to positive growth and margins have improved markedly. However, the restructuring is still taking too long.
Prada has reported a sales depression in all geographies, with all brands and across almost all product categories. Margins have deteriorated. However, management aroused some hope of positive growth and margin improvement in 2018 thanks to the restructuring efforts rolled out. We remain cautious.
Full-year sales benefited from the improvement in market momentum in Asia and Europe which helped mitigate the sharp drop reported in H1. Revenues were down 10% (-9% at CER) to €3,184m. Prada and Miu Miu were the best-performing brands. In Asia, sales plummeted by 12% at CER, boosted by a pretty good acceleration in China. Hong Kong and Macau saw a slower pace of decline. European sales fell by 5% at CER, hit by lower tourist inflows to France and Italy. Positive growth signs were reported in Ru
Prada experienced a disastrous H1 16 performance. There was unfavourable sales momentum in all regions, with all brands and all product segments. Group revenues were down 15% yoy to reach €1,554.2m. Retail sales plummeted by 18% (-16% at constant rates), pulled down by Asia and Europe which were depressed by 22% and 21% respectively. In the Americas, revenue retreated by 17%. Trading conditions in Japan were no better as sales declined by 2%. Wholesale improved slightly by 1% to €252.7m. As rega
Prada posted a disappointing performance in FY15 with flat sales and deteriorating margins. Consolidated revenues amounted to €3.55bn, pulled up by the developing retail network which increased its sales by 2.6% to €3.06bn. The continuing reduction in the exposure to wholesale reduced its revenues by 16.5% to €444.8m. Royalties were underpinned by the launch of the first Miu Miu fragrance and reached €43.4m (+13.5%). The negative sales momentum is mainly originating from the Chinese market where
Prada’s sales amounted €2,582m, i.e. 1.2% yoy growth upto October 2015. The retail network's sales were up by 3.8%, contributing to 87.3% of revenues. The wholesale channel's sales were down by 15.9%, contributing only 11.4%. The licensing business performed very well with a 16.2% increase in royalties to €33.5m. EBITDA amounted to €595.4m, drawing an EBIT of €373.9m and a net profit of €235.1m.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Prada S.p.A.. We currently have 13 research reports from 2 professional analysts.
Surface Transforms has issued new revenue guidance for FY24, with the company now expecting revenues in the range £17.5-22m. We are withdrawing our previous forecasts for FY24 and withdrawing our price target while we review the impact of the new guidance.
Companies: Surface Transforms PLC
Cavendish
We note the regulatory announcement this morning from Surface Transforms and withdraw our estimates and valuation, pending conversations with management.
Zeus Capital
Companies: BILN ELCO NXQ CUSN ATG
Companies: Nexteq PLC
Canaccord Genuity
Surface has issued a brief Q1 update. Production will ramp-up this year as final new equipment is installed, and manufacturing teething problems recede.
Companies: UTL ASC DNLM BWNG MONY DFS BOO
Shore Capital
16th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for
Companies: IP BILN SAR GATC ASTO PHE SHOE CCS IP CUSN
Hybridan
Dowlais Group’s first set of results were ahead of our expectations, with positive cash generation a highlight despite restructuring and demerger costs. Softer automotive markets will limit margin progress in FY24 towards the double-digit target. Despite this, margins of c 6.5% are still ahead of automotive peers, although the shares trade at a significant discount to our implied generic peer-based valuation.
Companies: Dowlais Group PLC
Edison
Companies: SCE HVO VLG
On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div
Companies: PTAL GHH IGP MSLH PINE NXQ EQLS NXR AXL
Companies: GHH PHC GETB DEC LORD GELN
Companies: CPH2 ITM CNA AFC DRX IKA CWR CHAR IES AT/ HE1 ATOM
Liberum
17th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARS TIDE SCE SNX ECK CNS TST SPEC SSTY
Gooch has issued a positive update for H1. Trading has started to recover with stocking levels normalising at industrial and medical devices customers. The outlook is positive with growth returning, and management has confirmed our full year estimates (adjusted for the disposal of EM4). The order book and order flow appear healthy, and net debt is comfortable. Gooch clearly still has plenty to do to lift operating margins from a lacklustre 8.1%, but the transformation plan appears to be back on
Companies: Gooch & Housego PLC
Nexteq’s FY23 results show adjusted EBITDA +4% ahead of the +6% upgrade at the January trading update, record FY23 EFCF of $17.4m, and a confident outlook that leads us to reiterate our FY24E revenue and upgrade FY24E gross profit, adj EBITDA, and EFCF by +1-10%. The strategic focus on higher-margin products and customers reducing elevated inventory levels led FY23 group revenue -5% yoy to $114.3m, with Quixant 6% lower at $69.3m and Densitron 2% lower at $45.1m. Effective supply-chain managemen
Share: