Prada (PRDSY)
OTHER OTC:PRDSY
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Prada
(OTC:PRDSY)
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Rating:70Outperform
Price Target:
$10.00
▼(-8.59% Downside)
Action:Upgraded
Date:05/30/26
The score is driven primarily by strong underlying profitability and generally solid cash generation, balanced by higher 2025 leverage, slight revenue contraction, and weaker cash conversion. Valuation is supportive with a modest P/E and strong dividend yield, while technicals remain neutral-to-weak due to longer-term downtrend signals and subdued momentum.
Positive Factors
High gross and operating margins
Sustained high gross and operating margins across 2023–2025 reflect durable pricing power and a profitable product mix in luxury leather goods and apparel. This margin profile provides a structural buffer in downturns, funds brand investment, and supports long-term return on capital.
Negative Factors
Rising leverage
A meaningful rise in leverage reduces financial flexibility and raises interest and refinancing risk if macro or demand conditions deteriorate. Higher debt levels constrain capital allocation, increase vulnerability to weaker cash conversion, and limit ability to fund opportunistic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and operating margins
Sustained high gross and operating margins across 2023–2025 reflect durable pricing power and a profitable product mix in luxury leather goods and apparel. This margin profile provides a structural buffer in downturns, funds brand investment, and supports long-term return on capital.
Read all positive factors
Prada (PRDSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.00B
Dividend Yield1.72%
Average Volume (3M)1.91K
Price to Earnings (P/E)12.2
Beta (1Y)0.68
Revenue Growth10.04%
EPS Growth6.33%
CountryUS
Employees15,216
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.66
Shares Outstanding1,279,412,000
10 Day Avg. Volume4,013
30 Day Avg. Volume1,905
Financial Highlights & Ratios
PEG Ratio-5.05
Price to Book (P/B)2.70
Price to Sales (P/S)2.28
P/FCF Ratio12.50
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue2.43
Enterprise Value/Gross Profit3.02
Enterprise Value/Ebitda7.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.73
Revenue Forecast (FY)$7.52B
Prada Business Overview & Revenue Model
Company Description
Prada S.p.A., together with its subsidiaries, designs, produces, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, and Africa. It offers its products unde...
How the Company Makes Money
Prada makes money primarily by selling luxury products under its brands. The company’s main revenue stream is retail and wholesale sales of (1) leather goods, (2) ready-to-wear apparel, (3) footwear, and (4) other accessories. These products are s...
Prada Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: clear commercial and brand strengths (fifth consecutive year of growth, robust retail momentum, strong Miu Miu performance, disciplined profitability and ESG progress) and a healthy balance sheet, but also notable near‑term challenges (meaningful FX headwinds, Versace integration dilution and planned channel repositioning, regional disruptions and cautious wholesale). Management emphasized continued investment in product, hospitality and digital capabilities while targeting margin resilience and Gradual recovery for Versace from 2027. Given the mix of solid operational results and material near‑term integration/FX headwinds, the tone is cautiously constructive.Positive Updates
Group Revenue Growth and Retail Momentum
Net revenues of EUR 5.7 billion, up 9% versus FY24 at constant FX (organic +8% Y/Y). Retail sales totaled EUR 5.1 billion, up 8% organic versus FY24 and up 28% versus FY23 at constant FX. Fourth quarter retail sales grew 6% despite a tough comparison base.
Negative Updates
Versace Integration Costs and Near‑Term Dilution
Versace acquisition closed Dec 2 and contributed one month of consolidation. Full‑year Versace revenues ~EUR 680 million. Management expects a mid‑single‑digit top‑line contraction at constant FX in 2026 (likely high single‑digit at current FX) due to channel repositioning and rationalization, and an EBIT loss in 2026 limited to a double‑digit figure (i.e., a material negative impact on group results in the near term). Versace is expected to be dilutive to FY26 group margin with recovery targeted from 2027.
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Q4-2025 Updates
Positive
Negative
Group Revenue Growth and Retail Momentum
Net revenues of EUR 5.7 billion, up 9% versus FY24 at constant FX (organic +8% Y/Y). Retail sales totaled EUR 5.1 billion, up 8% organic versus FY24 and up 28% versus FY23 at constant FX. Fourth quarter retail sales grew 6% despite a tough comparison base.
Read all positive updates
Company Guidance
Management reiterated that group momentum will continue into 2026 with "solid" organic growth at Prada and further normalization at Miu Miu (after Miu Miu’s FY retail up 35% to €1.6bn and Q4 +20% vs +84% LY), while flagging a challenging H1 (Miu Miu lapping prior Q1 +60% / Q2 +40% comps) and continued FX pressure similar to 2025 (FX headwind ~380bp on revenues in 2025). Key FY25 baselines: group net revenues €5.7bn (+9% at constant FX; +8% organic), retail sales €5.1bn (+8% organic), EBIT‑adjusted €1.32bn (23.2% margin, pre‑Versace margin steady vs 2024), gross margin +50bp to 8.3%, net income €852m, CapEx €617m (€535m ex real estate) and net debt €466m. On channels, retail drove growth (LFL +8%), wholesale +4% (3% organic) and royalties +19% (14% organic); space contribution remains low single digit and inventory incidence improved from 15% to 14%. Versace (one month consolidated in 2025; ~€680m pro‑forma FY revenue) will be a transition in 2026: management expects a mid‑single‑digit top‑line contraction at constant FX (likely high‑single digit at reported FX), greater discipline on discounting, channel repositioning and cost synergies, and an anticipated EBIT loss limited to a "two‑digit" million figure in 2026 with progressive margin and top‑line improvement targeted from 2027; excluding Versace, management said mid‑single‑digit reported top‑line growth would allow a steady EBIT margin while marketing may tick up slightly and CapEx intensity should start to decline.Prada Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.49B | 5.43B | 4.73B | 4.20B | 3.37B |
| Gross Profit | 4.41B | 4.34B | 3.80B | 2.63B | 2.55B |
| EBITDA | 2.05B | 2.01B | 1.29B | 1.06B | 687.63M |
| Net Income | 818.31M | 838.91M | 671.03M | 465.19M | 294.25M |
Balance Sheet | |||||
| Total Assets | 11.01B | 8.55B | 7.62B | 7.35B | 6.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.26B | 1.01B | 689.52M | 1.09B | 981.79M |
| Total Debt | 4.82B | 2.79B | 2.60B | 2.67B | 2.79B |
| Total Liabilities | 6.34B | 4.13B | 3.74B | 3.86B | 3.83B |
| Stockholders Equity | 4.64B | 4.40B | 3.86B | 3.47B | 3.11B |
Cash Flow | |||||
| Free Cash Flow | 1.00B | 1.19B | 395.61M | 868.84M | 923.90M |
| Operating Cash Flow | 1.59B | 1.65B | 1.16B | 1.11B | 1.14B |
| Investing Cash Flow | -1.75B | -462.45M | -759.19M | -250.21M | -137.26M |
| Financing Cash Flow | 431.92M | -875.47M | -775.73M | -787.38M | -494.73M |
Prada Technical Analysis
Negative
10.94
Price Trends
9.31
Positive
9.78
Negative
10.62
Negative
Market Momentum
0.05
Negative
50.69
Neutral
59.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDSY, the sentiment is Negative. The current price of 10.94 is above the 20-day moving average (MA) of 9.30, above the 50-day MA of 9.31, and above the 200-day MA of 10.62, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 59.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRDSY.
Prada Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $12.00B | 12.23 | 19.21% | 1.72% | 10.04% | 6.33% | |
68 Neutral | $3.28B | 11.39 | 16.38% | 1.46% | 1.35% | 661.25% | |
67 Neutral | $28.31B | 42.80 | 106.44% | 1.16% | 14.13% | -15.62% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.03B | 2.05 | 34.58% | ― | 194.57% | ― | |
54 Neutral | $1.07B | -40.61 | 17.42% | ― | 17.16% | -48.49% | |
51 Neutral | $2.17B | 16.36 | 105.97% | ― | -21.79% | ― |
* Consumer Cyclical Sector Average
PRDSY
Prada
9.38
-3.11
-24.90%
TPR
Tapestry
140.10
61.85
79.04%
CPRI
Capri Holdings
18.87
1.46
8.39%
SIG
Signet Jewelers
83.29
4.71
5.99%
REAL
RealReal
8.87
2.75
44.93%
LUXE
LuxExperience
7.48
-1.80
-19.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.