BUZZ-Prada's Hong Kong shares fall as rival Kering warns of revenue drop

Reuters03-20

** Hong Kong shares of Italian luxury group Prada fall as much as 10.9% to HK$54.70, lowest since March 7, and on course for fourth straight session of decline

** Stock last down 2.4%, compared with 0.2% rise in benchmark Hang Seng Index

** Concern over luxury goods related stock grows after Kering warned on Tuesday that first-quarter sales to likely to drop by around 10%, weighed down by star label Gucci, knocking back hopes that it had stemmed sales declines

** Citing a "steeper sales drop" at Gucci in Asia-Pacific region, Kering said the fashion brand's comparable quarterly revenue is projected to slide by nearly 20% year-on-year

** Prada said earlier in March that growth in Asia and outstanding performance of its Miu Miu brand had driven its 2023 revenues and the first two months of 2024 had showed a similar trend to the "very positive" fourth quarter

** Other luxury goods groups also slip, with jewellery chain operator Chow Tai Fok easing 1.2%, Luk Fook falling 1.8% and Emperor Watch & Jewllery down 5.5%

** Prada's Hong Kong-listed stock up 34.3% YTD

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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