By Andrea Figueras

Prada is scheduled to report results for the third quarter on Wednesday. Here is what you need to know.

SALES FORECAST: The Italian luxury fashion company is expected to report revenue of 1.26 billion euros ($1.36 billion) for the third quarter, according to a poll of estimates by 8 analysts compiled by Visible Alpha. In the prior-year period, the company booked quarterly revenue of 1.11 billion euros.

Shares in Prada, which is listed in Hong Kong, rose roughly 27% since the start of the year and moved up about 26.5% in the past 12 months.

WHAT TO WATCH

-- MIU MIU BRAND: Amid a slowdown in demand for luxury goods that is hampering most of its peers in the industry, Prada is set to be one of the leading players in the current earnings season. "We still expect the best performance in the sector, driven by Miu Miu," Equita SIM analyst Paola Carboni said in a note. The brand caters to a younger clientele, and still benefits from relaunch actions of recent years, which have strengthened Miu Miu's identity and make it less impacted by current sector woes, Carboni added.

-- ASIAN CONSUMERS: The performance of luxury names in China and in Japan has been a major focus of attention for analysts and investors, following challenges flagged by rivals including French behemoth LVMH. China is confronting a pile of economic challenges, which has led Chinese consumers, particularly middle-income shoppers, to reduce their spending on luxury goods. In Japan, some peers have also flagged sharp sales declines, after a surge in the past reporting season, boosted by a demand from tourists, who took advantage of the weak yen to buy luxury at lower prices. Prada looks set to benefit, again, from Miu Miu's success in these markets. The brand resonates well with young Asian consumers, Bernstein analysts said in a note.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

October 29, 2024 04:52 ET (08:52 GMT)

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