Recently, Australia’s largest investment bank Macquarie Group published research report will Prada rating increase, 2017 annual profit forecast 3% and 2018 to 30%. It is noteworthy that, although Macquarie improved Prada’s rating, but still predict Prada same-store sales until 2018 to be flat, 2019 will return to positive growth.
Macquarie pointed out that the macroeconomic weakness in the first half of the Prada2017 year sales were formed, but out of the Prada Group product quality, improve operational efficiency and cost control of appreciation, it will rating up.
Macquarie analysis also pointed out that, Prada handbag business accounted for 60% of the core business brand, the current sales performance improved. And in Macquarie Prada investigation found that, Prada part of the handbag style sold to the out of stock, visible handbag products will help Prada sales and earnings growth.
Prada said during the roadshow, the Chinese market sales heat up, Hong Kong market operating efficiency is gradually improved. Prada Asia’s core EBIT margin is highest for EBIT, while China’s region is at the top of the list. And Prada through the improvement of the supply chain and the Group of self-made products increase, the Group’s gross margin improved. At the same time, due to staff turnover, rental adjustment and administrative expenses reasonable control and other factors, the Group cost reduction.