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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 0 research reports from 2 professional analysts.
AFC has made strong progress with products and its manufacturing strategy. Despite heavy investment, the cash position, at £27.4m, was slightly better than our estimate for £26.9m, demonstrating good discipline. The monthly cash burn rate (at c. £1.3m) is tracking in-line with our expectations. Generally, we maintain our estimates for significantly increased sales in FY24e and FY25e, with the cash position unchanged. Recent news on commercial progress has been positive. The 30kW H-Power Generato
Companies: AFC Energy plc
Zeus Capital
Spectra Systems (SPSY) has an excellent record in growing profits through its highly regarded technology and relationships with key clients, which include a prominent global central bank. Now, the company is ready for the next stage, and we see the acquisition of Cartor Security Printers as a game-changer in enhancing its ability to continue, and potentially accelerate, this momentum, even as it continues to benefit from a near-term, multi-million-dollar sensor refresh programme with a long-term
Companies: Spectra Systems Corporation
WHIreland
The group’s year-end update flags trading ahead of expectations, achieved by strong growth in its Systems division, with the earlier than expected delivery of a NATO contract just prior to the year-end that pulls forward profit into FY24 making it a record year. Components continue to see a normalisation of orders and slower demand as previously flagged. Order cover is strong and further opportunities in the defence/security sector are leading to investment in Integrated Systems capabilities. Re
Companies: Solid State plc
Cavendish
2023 was a challenging year for Tandem, with cost-of-living pressures impacting demand for many of the group’s products. This led us to downgrade our forecasts several times during the year (including in December), and today’s results are largely in line with those revised projections – revenue -17% YoY to £22.2m and an adj. LAT of -£1.0m (our forecast of -£0.9m). FY24E looks more positive, however: economic pressures are easing for consumers (inflation is falling, interest rate cuts are expecte
Companies: Tandem Group plc
Today’s trading update confirms FY24E profitability above the top end of previously guided range, with positive trading momentum building into FY25.
Companies: Revolution Beauty Group plc
Companies: FOG TND BVXP ACC HDD
Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. This morning, the group has provided a trading update for the year ended 31 March 2024, reporting the earlier than expected delivery of specific contracts within its Systems division and resulting in the group's FY 2024E revenue and PBT outturn anticipated ahead of our forecasts, with a commensurate decrease in our FY 2025E estimates. The delivery of these contr
Encouraging FY23 results from SPSY this morning show profits and cash a touch ahead of expectation and position the company well for a year of strong growth in FY24E. SPSY leads the market in machine-readable high speed banknote authentication, brand protection technologies and gaming security software. The company grew the business robustly in FY23 (PBTA +6%, EPS pared by increased tax payments, progressive DPS), building on a decade of double digit CAGR; and closed the year with the transfor
Liberum
Companies: LPA SOLI NANO QTX
Finals from the leader in machine-readable high-speed bank note authentication, brand protection technologies, security printing, and gaming software, in line. FY23’s stand-out feature was December’s acquisition of Cartor Holdings, the security printing business. As discussed at the time, this has moved Spectra’s Fusion polymer substrate proposition substantially forward, strengthens its competitive position and provides access to state of the art manufacturing facilities. Extending up the suppl
Allenby Capital
While revenue fell short of expectations due mainly to self-tan weakness, progress on margins, cost synergies and efficiency enabled BAR to deliver a reduction in H1 losses. While growth and profitability in other high margin brands has progressed, Skinny Tan trading is not expected to improve until next year. With synergy benefits having mostly annualised, lower sales forecasts impact the timing of the inflection to profit. We now assume losses both this and next year, albeit net cash is mostly
Companies: Brand Architekts Group plc
Singer Capital Markets
Companies: Portmeirion Group PLC
Shore Capital
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: IG Design Group plc
Canaccord Genuity
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