According to reports, Credit Lyonnais has published a research note indicating that PRADA's (01913) retail sales in the third quarter of this year largely met market expectations, showing a year-on-year increase of 7.6% when calculated at constant exchange rates. Retail sales from the Prada and Miu Miu brands also aligned with market predictions, showing a year-on-year decline of 0.8% and an increase of 29%, respectively. Over a two-year period, both brands demonstrated strong quarterly performance, with the core Prada brand achieving year-on-year growth of 1% in both the second and third quarters of this year, while Miu Miu saw significant growth of 136% and 134%, respectively. Credit Lyonnais has maintained a target price of HKD 50 and an "Outperform" rating for PRADA, noting that the brand continues to expand its market share. However, with a valuation based on a 26 times enterprise value to EBITDA ratio, its valuation remains low, representing a 53% discount relative to industry averages.

Regarding the core Prada brand, Credit Lyonnais pointed out that while the Chinese market is still experiencing negative growth, there have been quarter-on-quarter improvements in the third quarter. The Americas, Europe, and Japan markets all reported positive growth, bolstered by strong local demand and slightly improved tourism demand. Looking ahead, sales continue to improve from October to date, but management noted that the fourth quarter presents a challenging comparison base, and the final six weeks will be crucial.