PRADA (01913) Shares Drop Over 5% in Early Trading as Morgan Stanley Forecasts Significant Slowdown in Miu Miu Growth

Stock News2025-12-22

PRADA (01913) shares fell more than 5% in early trading, declining 4.8% to HK$44.84 by the time of writing, with a turnover of HK$13.08 million. Morgan Stanley released a research report stating that PRADA may struggle to sustain its growth momentum amid a new wave of creativity in the luxury fashion industry. The report noted that while the Prada brand remains relatively stable, the growth rate of Miu Miu is expected to slow significantly further. It projects Miu Miu's year-on-year growth in Q4 at just 17%, compared to 29% in Q3 and 49% in the first half of the year.

Citigroup forecasts PRADA's Q4 FY2025 sales to grow 6% year-on-year at constant exchange rates, but decline 1% on a reported basis to €1.59 billion. By brand, retail sales for Prada are expected to remain flat year-on-year (down 1% in Q3), while Miu Miu is projected to grow 20% (compared to 29% in Q3). The company's second-half EBIT is expected to decline 3% year-on-year to €685 million, with the EBIT margin narrowing by 100 basis points to 23.4%.

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