HK Stock Market Move | PRADA (01913) rises more than 3%, UBS expects the Prada brand to continue outperforming the market, Miu Miu will become the group's growth engine.

PRADA (01913) rose more than 3%. As of the time of writing, it increased by 3.17% to 53.7 Hong Kong dollars, with a trading volume of 56.2472 million Hong Kong dollars. UBS published a research report pointing out that although the overall trend of the luxury goods industry is sluggish, they still believe that the third-quarter performance that PRADA is about to reveal will once again demonstrate its ability to continue expanding market share. The bank expects the Prada brand to continue outperforming the market, and believes that Miu Miu's strong momentum will become a powerful growth engine for the group. Despite some investors' concerns about the high base of comparison for Miu Miu in the fourth quarter and the recent departure of the CEO, the bank is confident in the company's management capabilities, and consistent brand aesthetics continue to be the ultimate key to its brand popularity. The bank expects PRADA's third-quarter sales to reach 1.267 billion euros. By channel, sales in directly operated stores (DOS) are expected to increase by 16% to 1.153 billion euros, while wholesale sales are expected to increase by 5% to 84 million euros. By retail region, Japan is expected to lead with a 62% increase, followed by the Middle East with a 31% increase, Europe with a 17% increase, America with a 10% increase, and the Asia-Pacific region with a 6% increase. By retail brand, it is estimated that the Prada brand will grow by 3%, and the Miu Miu brand by 84%.