By Andrea Figueras

Prada Group is scheduled to report results for 2024 on Tuesday. Here is what you need to know.

SALES FORECAST: The Italian luxury fashion firm is expected to report net revenue of 5.37 billion euros ($5.57 billion) for 2024 as a whole, according to a poll of estimates by 15 analysts compiled by Visible Alpha. In the prior year, the group posted revenue of 4.73 billion euros.

NET PROFIT FORECAST: Analysts estimate net profit of 812.6 million euros, according to the same consensus, up from 671 million euros it booked in 2023.

Shares in Hong Kong have jumped nearly 23% over past 12 months and are up around 14% since the start of the year.

WHAT TO WATCH

--POTENTIAL VERSACE DEAL: The focus will likely be on any acquisition news after some media reports have recently flagged that Prada would be willing to acquire the Versace brand from Capri Holdings, the luxury group that houses Jimmy Choo and Michael Kors. "Prada would be well positioned to realize Versace's brand potential in the long term, potentially paving way for the group to become Italy's answer to the French luxury conglomerates," UBS analysts said in a note. Prada has proved success of turning around its namesake brand as well as the Miu Miu label in recent years, UBS said.

--SUCCESSION PLANS: Investors will also focus on the company's succession plans. Lorenzo Bertelli, the son of Muccia Prada and of Prada's Chairman Patrizio Bertelli, should become the group chief executive in the next few years, Barclays analysts said in a note.

--SECTOR REBOUND: The fourth-quarter earnings season surprised to the upside with an acceleration in organic sales growth across the board, driven by U.S. consumers and some improvement among Chinese nationals, UBS analysts said. However, polarization trends continue to define the sector and investors need to be more selective, as only a handful of names can see positive earnings revisions, the analysts said. Prada has been able to position itself among the winners in the luxury sector, helped by the success of its Miu Miu brand, which resonates well with Asian consumers.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

March 03, 2025 06:26 ET (11:26 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.