Street Calls of the Week
Investing.com -- Prada shares closed 6.4% higher in Hong Kong on Friday after the luxury fashion group released its third-quarter 2025 results.
During a conference call, CEO Andrea Guerra noted that in the first four weeks of October, the Prada brand continued to improve while Miu Miu maintained its growth trajectory. Guerra expressed satisfaction with current trading, stating they were "happy so far."
The company reported constant-currency growth across most geographies in the third quarter. The Americas showed the strongest performance with 20% growth, accelerating from 14.5% in the second quarter. Asia-Pacific sales rose 10%, slightly below the 11.3% increase in the previous quarter, with management noting "some improvement" in Mainland China trends.
European sales grew 2%, down from 4.3% in the second quarter, with local demand holding up well despite softer tourism. The Middle East posted 10% growth, moderating from 24.9% in the previous quarter due to "high comps."
Japan was the only region to decline, falling 1% in the quarter, though this marked an improvement from the 7.8% drop in the second quarter. Management attributed this improvement to both solid local demand and increased traveler spending.
By brand, Prada saw a 0.8% year-over-year sales decline at constant exchange rates in the third quarter, performing better than the 3.6% drop in the second quarter. Meanwhile, Miu Miu continued its strong performance with 28.6% growth, though this represented a deceleration from 40.5% in the second quarter, which management attributed to tough comparisons against 105% growth in the third quarter of 2024.
Regarding Chinese consumers, management indicated they performed "better quarter-over-quarter" though remained negative. Guerra stated he does not expect to "ever see again in the near future what we’ve seen in the last decade" regarding the Chinese market, but added that he believes the "worst is over."
On profitability, management indicated they were on track to deliver what was promised, highlighting that key sales weeks in the fourth quarter are yet to come, starting from mid-November.
The quarter also saw several product launches, including Prada’s Explore, Etude, and Dada collections, while Miu Miu launched exclusive pop-ups called Miu Miu Atheneum and its first fragrance in collaboration with L’Oreal, which management described as a "great success."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.