HK Stock Market Move | PRADA (01913) dropped more than 5% in early trading. Morgan Stanley predicts that the growth rate of the Miu Miu brand will significantly slow down.

PRADA (01913) fell more than 5% in early trading, as of the time of publication, it fell by 4.8% to 44.84 Hong Kong dollars, with a turnover of 1308.04 million Hong Kong dollars. Morgan Stanley released a research report stating that in the midst of a new wave of creativity in the luxury fashion industry, PRADA will find it difficult to maintain its growth momentum. The bank pointed out that the momentum of the Prada brand is still quite strong, but it is expected that the growth rate of the Miu Miu brand will further slow down significantly. It is expected that fourth-quarter growth will only be 17% year-on-year, while Miu Miu grew by 29% year-on-year in the third quarter, and 49% in the first half of the year. Citi expects that PRADA's fourth-quarter sales for fiscal year 2025 will increase by 6% year-on-year at fixed exchange rates, but will decrease by 1% to 1.59 billion euros according to the report; In terms of retail sales divided by brand, Prada is expected to be flat year-on-year (down 1% in the third quarter), while Miu Miu is expected to grow by 20% year-on-year (up 29% in the third quarter); EBIT for the second half of the year is expected to decrease by 3% year-on-year to 685 million euros, and EBIT profit margin is expected to narrow by 100 basis points year-on-year to 23.4%.