Prada's prelim Q3 organic revenue growth slows to 1% in Q3; Middle East sales improve sequentially

Overview

• Italy luxury goods group's preliminary nine-month revenue rose 15% yr/yr at constant exchange rates

• Organic revenue growth slowed to 4% for the period, 1% in Q3 amid challenging market

• Americas led regional growth, while Middle East sales declined despite quarter-on-quarter improvement

Outlook

• Prada did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers

• AMERICAS GROWTH - Co said Americas was its best performing region, driven by strong domestic demand

• MIDDLE EAST WEAKNESS - Co said Middle East sales continued to weigh negatively, though conditions improved quarter-on-quarter

• RETAIL EXECUTION - Co attributed resilience in retail sales to brand desirability and effective retail initiatives

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

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• Oct 20 - Ferragamo third-quarter revenue falls as wholesale drops

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)