In "The Big Banks," Citibank expects PRADA's sales to increase by 6% in the first quarter of this year, maintaining an "Outperform" rating

Citi published a research report predicting that Prada (01913.HK) will see organic sales growth at constant exchange rates (excluding Versace) of approximately 1% in the first quarter of this year. After accounting for the consolidation impact of Versace at around 10% and an exchange rate headwind of about 700 basis points, the report estimates that sales will grow by approximately 6% year-on-year.

By brand, Citi forecasts that the retail net sales of Prada and Miu Miu will grow by 0.5% and 3% respectively at constant exchange rates. Although Prada continues the growth momentum from the fourth quarter of last year, Miu Miu faces the toughest comparative base, with a significant business presence in the Middle East and Africa (MEA).

The firm expects wholesale and licensing businesses to maintain positive year-on-year growth. By region, the Americas and Asia-Pacific are performing robustly, while Europe is weak due to a decrease in tourists, and the Middle East is under significant pressure. As the comparative base pressure for Miu Miu gradually eases by 2026 and Prada's investments begin to yield results, stronger sales performance is anticipated in the second half of this year.

Citi maintains a "Outperform" rating on Prada with a target price of HKD 48, believing the risk-reward is attractive