Luxury never goes out of style

KGI report.

Prada SpA is an Italy-based company engaged in fashion industry. The Company is a parent of the Prada Group. The Company, along with its subsidiaries, is engaged in the design, production and distribution of leather goods, handbags, clothing, eyewear, fragrances, footwear and accessories. Prada SpA manufactures jackets, trousers, skirts, dresses, sweaters, blouses, as well as perfumes and watches, among others. The Company trades its products through several brands, such as Prada, Miu Miu, The Church and The Car Shoe. Prada SpA operates in approximately 70 countries through directly operated stores, franchise operated stores, a network of selected multi-brand stores and department stores. Prada Spa operates through a numerous subsidiaries, including Artisans Shoes Srl, Angelo Marchesi Srl, Prada Far East BV, Tannerie Megisserie Hervy SAS and Prada SA, among others.

Prada Group recently announced that the company will recruit 400 people by the end of 2023 to strengthen its production capability and craftsmanship expertise in Italy. The strengthening of the company's production would allow for greater agility and a reduction of time-to-market, bolstering its internal logistics process, which already includes quality checks on raw materials and finished goods.This builds on the Prada Group's ongoing investment into its supply chain, a strategy that it first announced during its Capital Markets Day at the end of 2021.

Prada Group announced recently that the company would be engaged in a partnership with Adobe to elevate customer experiences across all digital and physical retail properties. The partnership spans Prada Group's range of brands, including Prada, Miu Miu, Church's, Car Shoe, Pasticceria Marchesi, and Luna Rossa. The company will be able to combine vast amounts of existing data, create unified customer profiles, and deliver personalized experiences across any channel to its customers in real-time. Clients who have opted in will enable sales assistants to know when they visit a store and their preferences, with the goal of a richer personalized experience.

Lyst, a reporting index that uses shopper data to rank popular fashion brands quarterly, has released its latest report for Oct to Dec 2022, marking its 5th year of customer insights. This unique index ranks fashion's top brands and products by gathering shopping data from 200 m customers globally. The determination of brand heat on the Lyst index chart goes beyond sales and views. It also includes social media mentions, activity, and engagement stats from around the world to determine which brands top the rankings. In Lyst's latest report, Prada ranked at the top followed by Gucci and Moncler.

Revenue in FY22 was €4.2 b, up 21% YoY. Retail Sales rose 24% YoY to €3.7 b.

Bloomberg consensus tp is USD62.88.