Prada shares fell 1.44 percent on the Hong Kong stock exchange to close at 79 Hong Kong dollars ($10.19 at current exchange) while the Hang Seng Index declined 0.27 percent.
The Milan-based company posted 7.6 percent increase in net profit and 11.7 percent increase in revenue, bolstered by double digit growth in Asia and the Americas.
The Italian fashion house, which owns Miu Miu as well as Church's, posted better-than-expected margins but missed some analyst estimates on profit. Still, at least three analysts reiterated their buy or outperform ratings on the stock.
Citibank analyst Thomas Chauvet said he had been expecting stronger earnings momentum given the easy comparisons with a year ago. The analyst reiterated his buy rating on Prada shares, citing Prada's earnings growth potential and strong brand in China.
Prada raised pricing and reduced discounting during the first half of the year, but analysts noted that this didn't seem to have any negative impact on sales or deter the current customer base. Goldman Sachs highlighted the company's gross margin growth and said the quarter's results "highlight Prada's competitive advantages within the luxury gods sector, particularly the pricing power of the Prada brand."
Not all analysts were so impressed. Nomura downgraded Prada shares to neutral, citing a "mixed" outlook and limited upside with valuations already near the top end among fast-growing peers. Nomura also noted that even though EBITDA was higher by three percent, one-off taxes impacted overall earnings.
Elsewhere, Japan's Nikkei 225 index gained 1.35 percent while Singapore's Straits Times was gaining about 0.41 percent in late-day trade.
“I think what’s so interesting about the #MeToo movement and this whole new wave of feminism in general, is that women are finally seeing, ’Oh I can start my own company, oh I can lear to code, oh I can leave my nine-to-five job and do the thing I want to do,” said @brooklyndecker ahead of her @sxsw talk for @createcultivate. The former model took the stage to share wisdom about networking and female-driven entrepreneurship. #wwdeye #sxsw (📷: @jgreenery)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
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Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
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@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.