Prada Rises on Coty Deal for Miu Miu Perfume: Hong Kong MoverAndrew Roberts
Prada SpA, the Italian seller of the namesake luxury bags, rose the most in more than a month in Hong Kong trading after signing a licensing deal for Coty Inc. to create and distribute perfumes under the Miu Miu brand.
Prada rose as much as 3.2 percent to HK$76 in Hong Kong before trading at HK$75.90 as of 11:22 a.m. local time, headed for the biggest gain since Sept. 16. The Hang Seng Index fell 0.3 percent.
Prada is seeking to develop Miu Miu as global demand for luxury goods cools. The 20-year-old fashion and accessories label, named after Prada Chairman Miuccia Prada, had sales of 512.8 million euros ($706 million) in the year ended Jan. 31, or 16 percent of total company revenue. The deal with Coty would allow Prada to expand its second-largest unit in the $60 billion luxury beauty industry.
The agreement with Coty “marks a major step forward in Miu Miu’s development plan,” Prada Chief Executive Officer Patrizio Bertelli said in the statement.
The Miu Miu fragrance line is expected to be introduced in 2015, the Milan-based company said yesterday in a statement.
Sales of luxury goods are set to expand 2 percent this year to 217 billion euros, according to Bain & Co. Spending on beauty products, which accounts for about a fifth of the total, will grow in line with the market, Bain estimates.