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Prada (PRDSY)
OTHER OTC:PRDSY
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Prada
(OTC:PRDSY)
Select Model
Select Model
Rating:76Outperform
Price Target:
$13.50
▲(12.03% Upside)
Prada's overall stock score reflects strong financial performance and a solid earnings call, tempered by mixed technical indicators and valuation metrics. The company's robust revenue growth and profitability are significant strengths, while challenges in key markets and technical trends present moderate risks.
Prada (PRDSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.80B
Dividend Yield3.15%
Average Volume (3M)1.64K
Price to Earnings (P/E)16.2
Beta (1Y)0.59
Revenue Growth12.12%
EPS Growth12.85%
CountryUS
Employees15,216
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.33
Shares Outstanding1,279,412,000
10 Day Avg. Volume0
30 Day Avg. Volume1,642
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)4.70
Price to Sales (P/S)3.81
P/FCF Ratio17.36
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue3.40
Enterprise Value/Gross Profit4.26
Enterprise Value/Ebitda9.18
Forecast
1Y Price Target
$13.50Price Target Upside12.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Prada Business Overview & Revenue Model
Company DescriptionPrada S.p.A., together with its subsidiaries, designs, produces, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, and Africa. It offers its products under the Prada, Miu Miu, Church's, and Car Shoe brands. The company also provides eyewear and fragrances under licensing agreements, as well as operates in the food sector under the Marchesi 1824 brand. As of December 31, 2021, it had 635 directly operated stores. The company also sells its products through a network of approximately 26 franchise operated stores; multi-brand stores; luxury department stores; independent retailers; and online retailers. In addition, it engages in the event management and real estate business, as well as operates duty-free stores. The company was founded in 1913 and is headquartered in Milan, Italy. Prada S.p.A. is a subsidiary of Prada Holding S.p.A.
How the Company Makes MoneyPrada generates revenue primarily through the sale of luxury products in both retail and wholesale channels. The company operates a network of exclusive boutiques and flagship stores in major cities worldwide, which contribute significantly to its sales. Additionally, Prada's e-commerce platform has become increasingly important, allowing it to reach a broader customer base. Key revenue streams include the sale of leather goods, apparel, and footwear, with leather goods representing a substantial portion of total sales. The brand also benefits from strategic partnerships and collaborations that enhance its visibility and attract new customers. Seasonal collections and limited-edition releases drive demand and help maintain exclusivity, further supporting the company's revenue model.
Prada Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with notable achievements in revenue growth, especially for Miu Miu, and strong sustainability initiatives. However, challenges remain with the Prada brand's sales decline in key markets and issues in the wholesale channel. The company maintains stable profitability but faces cyclical downturns in tourism impacting growth.Q2-2025 Updates
Positive Updates
Solid Revenue Growth
Prada Group reported net revenues of EUR 2.74 billion, up 9% versus H1 '24 at constant FX, with retail sales reaching EUR 2.45 billion, up 10%.
Miu Miu's Strong Performance
Miu Miu retail sales grew by 49% in the semester and 40% in Q2, with well-distributed growth across categories and regions.
Sustainability and ESG Initiatives
Progress in ESG, including transition to lower impact raw materials, DE&I road map implementation, and investment in ocean literacy and preservation.
Stable Profitability
The group achieved an EBIT adjusted of EUR 619 million with a margin of 22.6%, maintaining steady profitability despite increased investments.
Expansion and Innovation
Prada's efforts in opening new stores, launching new collections, and enhancing the customer experience with personalized offerings like the new men's store on 5th Avenue.
Negative Updates
Challenges in Key Markets
Retail sales for the Prada brand were down 2% in the semester, impacted by lower touristic flows in Japan and Europe.
Wholesale Channel Decline
Wholesale sales were down 1% for the semester and down 7% in Q2, affected by phasing and a selective approach with independents.
Tourism-Related Cyclical Downturn
A downturn led by reduced American and Asian tourist flows, impacting luxury business performance, particularly in Japan and Europe.
Company Guidance
During the Prada Group's First Half 2025 Results Presentation, Andrea Guerra, the Group CEO, provided a comprehensive overview of the company's solid performance amidst industry challenges. Prada reported a 10% like-for-like growth, with net revenues reaching EUR 2.74 billion, marking a 9% increase at constant FX. Retail sales rose by 10% to EUR 2.45 billion, while EBIT adjusted stood at EUR 619 million, maintaining a margin of 22.6%. The group's net cash position was EUR 352 million, with cash flow from operations at EUR 696 million. Miu Miu's retail sales surged by 49%, contributing to 32% of the group’s retail sales. Geographically, Middle East sales increased by 26%, while Asia Pacific and Europe grew by 10% and 9%, respectively. The company maintained a gross margin of 80.1%, with OpEx rising by 9% at constant FX due to increased consumer-facing activities. Capital expenditures for the period reached EUR 247 million, indicating a commitment to strategic investments. Despite facing headwinds from lower tourism, particularly American tourists in Europe, Prada expects improvements in the second half of the year, focusing on strengthening consumer relationships and enhancing retail experiences.Prada Financial Statement Overview
Summary
Prada demonstrates strong financial health with robust revenue growth, high profitability margins, and efficient cash flow management. The balance sheet is well-managed with moderate leverage and strong equity returns, positioning the company well for sustained growth in the luxury goods sector.Income Statement
Prada's income statement reflects strong performance with a consistent increase in total revenue, reaching €5.43 billion in 2024. The gross profit margin is robust at 79.8%, and the net profit margin improved to 15.4% in 2024, indicating efficient cost management and profitability. Revenue growth rate from 2023 to 2024 is 14.9%, showcasing solid growth momentum. The EBIT margin stands at 23.6%, and the EBITDA margin at 37.1%, both indicating strong operational efficiency.85
Very Positive
Balance Sheet
Prada's balance sheet is stable with a debt-to-equity ratio of 0.63, reflecting a balanced approach to leverage. The return on equity (ROE) is impressive at 19.1%, indicating effective use of equity capital. The equity ratio is 51.4%, suggesting a healthy level of equity financing relative to total assets. The company maintains a solid asset base, supporting its growth trajectory.78
Positive
Cash Flow
Prada's cash flow statement shows strong free cash flow generation, with a significant increase in free cash flow from €395.6 million in 2023 to €1.19 billion in 2024. The operating cash flow to net income ratio is 1.97, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.42, reflecting efficient capital expenditure management.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.43B | 4.73B | 4.13B | 3.37B | 2.42B |
| Gross Profit | 4.34B | 3.80B | 2.63B | 2.55B | 1.74B |
| EBITDA | 2.01B | 1.73B | 1.42B | 1.09B | 648.73M |
| Net Income | 838.91M | 671.03M | 465.19M | 294.25M | -54.14M |
Balance Sheet | |||||
| Total Assets | 8.55B | 7.62B | 7.35B | 6.96B | 6.53B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 689.52M | 1.09B | 981.79M | 442.39M |
| Total Debt | 2.79B | 2.60B | 2.65B | 2.79B | 2.89B |
| Total Liabilities | 4.13B | 3.74B | 3.86B | 3.83B | 3.68B |
| Stockholders Equity | 4.40B | 3.86B | 3.47B | 3.11B | 2.83B |
Cash Flow | |||||
| Free Cash Flow | 1.19B | 395.61M | 868.84M | 923.90M | 482.86M |
| Operating Cash Flow | 1.65B | 1.16B | 1.11B | 1.14B | 592.42M |
| Investing Cash Flow | -462.45M | -759.19M | -246.75M | -137.26M | -149.91M |
| Financing Cash Flow | -875.47M | -775.73M | -775.04M | -494.73M | -395.27M |
Prada Technical Analysis
Positive
12.05
Price Trends
11.49
Positive
12.10
Negative
13.60
Negative
Market Momentum
0.16
Negative
61.49
Neutral
63.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDSY, the sentiment is Positive. The current price of 12.05 is above the 20-day moving average (MA) of 11.32, above the 50-day MA of 11.49, and below the 200-day MA of 13.60, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 61.49 is Neutral, neither overbought nor oversold. The STOCH value of 63.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRDSY.
Prada Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $14.80B | 16.19 | 19.96% | 3.15% | 12.12% | 12.85% | |
75 Outperform | 3.78B | 31.00 | 7.64% | 1.32% | -1.63% | -72.22% | |
63 Neutral | 771.66M | -19.48 | 0.00% | ― | 7.08% | -42.22% | |
60 Neutral | 22.93B | 133.80 | 21.36% | 1.32% | 5.09% | -80.06% | |
58 Neutral | 1.15B | -9.44 | 10.45% | ― | 12.68% | 62.96% | |
50 Neutral | 2.58B | -2.30 | 6541.18% | ― | -16.69% | -279.61% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
PRDSY
Prada
12.05
-0.53
-4.21%
TPR
Tapestry
109.50
67.14
158.50%
CPRI
Capri Holdings
21.36
-17.71
-45.33%
SIG
Signet Jewelers
92.41
0.88
0.96%
REAL
RealReal
10.07
6.86
213.71%
LUXE
LuxExperience
9.31
5.44
140.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.