Citi has released a research report maintaining its "Neutral" rating on PRADA (HKEX: 01913) while lowering its price target from HK$41.5 to HK$39.9.

The bank has cut its group net sales forecasts for each year from 2026 to 2028 by approximately 1%, reflecting more cautious assumptions for Prada and Miu Miu's constant-currency growth in the second half, due to weaker foot traffic in China and other parts of Asia, ongoing disruptions in the Middle East, and higher comparison bases in the United States and South Korea.

As a result, the bank has lowered its EBIT and earnings per share forecasts for 2026 to 2028 by approximately 3%.

The bank expects third-quarter results to be announced on October 22, with net revenue of 1.48 billion euros for the period, including flat constant-currency organic growth and a contribution of approximately 9 percentage points from the consolidation of Versace.

On a constant-currency organic year-on-year basis by channel, retail was flat, wholesale fell 1%, and licensing revenue rose 8%; for retail by region, Europe fell 4%, North America rose 8%, Asia-Pacific fell 1%, Japan rose 3%, and the Middle East dropped 20%; for retail by brand, Prada was flat, Miu Miu fell 3%, and Versace declined 9%.