Subject category:
Finance, Accounting and Control
Published by:
NEOMA Business School
Version: 25-Mar-2019
Length: 20 pages
Data source: Published sources
Abstract
June 2017: a few weeks after the publication of their disappointing 2016 annual results, Prada’s stock plunged to a low HKD27 and Enrique Garcia, CFA, financial analyst at a family office, was called by one of his wealthy clients to see if there was not an attractive opportunity to invest in the Italian luxury company. His client believed that, bearing in mind the strong historic reputation of Prada, the brand could still have great value, and thus, stock market potential. He thus asked Enrique’s expert advice on the issue. To respond to his client’s query, Enrique documented himself on the history of the Prada group, its financial track record and present positioning, before performing a financial analysis of the company and the value of its brand.
Teaching and learning
This item is suitable for postgraduate and executive education courses.Time period
The events covered by this case took place in 2016-17.Geographical setting
Region:
Europe
Countries:
Italy; France
Featured company
Prada
Turnover:
EUR 3184069000
Type:
Public company
Industry:
Luxury
Other keywords:
Retail - Luxury
About
Abstract
June 2017: a few weeks after the publication of their disappointing 2016 annual results, Prada’s stock plunged to a low HKD27 and Enrique Garcia, CFA, financial analyst at a family office, was called by one of his wealthy clients to see if there was not an attractive opportunity to invest in the Italian luxury company. His client believed that, bearing in mind the strong historic reputation of Prada, the brand could still have great value, and thus, stock market potential. He thus asked Enrique’s expert advice on the issue. To respond to his client’s query, Enrique documented himself on the history of the Prada group, its financial track record and present positioning, before performing a financial analysis of the company and the value of its brand.
Teaching and learning
This item is suitable for postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2016-17.Geographical setting
Region:
Europe
Countries:
Italy; France
Featured company
Prada
Turnover:
EUR 3184069000
Type:
Public company
Industry:
Luxury
Other keywords:
Retail - Luxury