2023 profits beat consensus
　　Prada Group reported 2023 annual results: Revenue reached EUR4,726mn, +13% YoY and +17% YoY at constant exchange rates (CER), in line with consensus of EUR4,670mn. EBIT grew 37% YoY to
　　EUR1,062mn at 22.5% margin (vs. 18.5% in 2022), beating consensus
　　of EUR1,030mn. Group net income grew +44% YoY to EUR671mn at 14.2% margin (vs. 11.1% in 2022), beating consensus of EUR654mn. All growth rates by are CER YoY unless specified.
　　In 2023, retail sales grew +17% (+46% vs. 2021) driven by full price like- for-like sales, with both average price and full-price volumes up YoY.
　　Wholesale grew +13% help by rebound of duty-free channels and royalties grew +36% supported by eyewear and beauty. Prada brand (+12%) recorded universally strong growth among different categories, genders and age groups, Miu Miu brand concluded the year with stellar growth (+58%), also broad-based. Church’s brand recorded positive like-for-like growth in 2023, despite reduction of store network.
　　In terms of retail sales, Japan (+44%) was the best performing region
　　in 2023, driven both by local clientele and tourists’ spending. Asia Pacific (+24%) attribute its success to solids trends in Greater China. Europe (+14%) started the year vigorously with more normalized growth in 2H23.
　　Americas ended the year flat.
　　In 4Q23, retail sales of both Prada brand (+10% vs. +5% in 3Q23) and
　　Miu Miu brand (+82% vs. +48% in 3Q23) accelerated helped by easier comps in Chinese mainland. Group retail sales in the Americas resumed to growth (+4% vs. down 2% in 3Q23) benefited from spending repatriation.
　　As of end-2023, the group operated 606 directly operated stores (DOS), implying net closure of 6 DOS throughout the year. Annual Capex jumped to EUR753mn in 2023 (vs. EUR276mn in 2022) mainly due to strategic acquisition of retail property at 724 5th Avenue, New York for EUR366mn.
　　The group has a net cash position of EUR197mn as of December 31, 2023 and proposed dividend of EUR0.137 per share (implying 52% payout) for 2023.