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.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
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To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye