Citi issued a report stating that it updated its model for PRADA (01913.HK)  +0.180 (+0.493%)    Short selling $15.88M; Ratio 2.433%   after Miu Miu and the Prada brand released their 1Q sales data. Growth at Miu Miu further normalized, while the Prada brand remained flat for the second consecutive quarter. Although managements comments on current trading conditions outside the Middle East were relatively positive, visibility for the remainder of the year remains limited. Ongoing geopolitical instability, along with a more active product innovation cycle in the fashion industry, may pose pressure on short-term growth.

Citi lowered its reported revenue forecasts for PRADA for fiscal years 2026 to 2028 by 1%, 2% and 3%, respectively, mainly due to reduced space contribution and slightly weaker comparable sales momentum, leading to organic growth being revised down from the previous 5%, 6% and 6% to 4%, 5% and 5%, respectively, partly offset by FX headwinds. With gross margin assumptions largely unchanged and operating expense growth assumptions lowered, EBIT and EPS forecasts were cut by 1%, 4% and 6%, respectively. EBIT margin forecasts were adjusted to 20.2%, 20.7% and 21.3%, representing a reduction of 300 bps, and increases of 50 bps and 60 bps, respectively, with fiscal 2026 EBIT margin diluted by about 360 bps due to Versace. The TP was lowered from HKD41.6 to HKD38, with a Neutral rating maintained. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-22 16:25.)

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