BUZZ-Prada HK shares drop most in 7 months on results, Versace concern

** Hong Kong shares of Prada SpA 1913.HK drop 6.2% to HK$40.68, on course for the biggest one-day pct decline since July 31

** Stock hits the lowest point since February 6

** Italian luxury group 1913.F reported on Thursday an 8% rise in 2025 organic revenues, driven by strong growth at its smaller label Miu Miu, although margins were dented by the acquisition of Versace, which will continue to weigh on profitability this year

** Prada plans to cut outlets and lower brands at Versace, which posted an operating loss last year and is expected to report a similar 2026 result

** Morningstar says Prada stock trades at a discount to five-year average P/E multiple, reflecting investor caution on Miu Miu’s fashion-led profile and doubts about the group's ability to maintain above industry growth and margin gains amid a temporary drag from Versace

** "We do not expect the Middle East war to materially impact the company. The region represented about 5% of sales, which is at the midpoint of our luxury coverage" - Morningstar

** YTD, Hong Kong stock down 7.7%; benchmark Hang Seng Index .HSI down 0.2%

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))