ECP | Luxemburg, 12.03.2021
As is the standard practice at ECP after release of the company’s earnings, we review and update our fair values, snippets of which are shown hereunder. This week we thought of revisiting Friday Morning Coffee Nr. 59 and Nr. 130 that we wrote in May 2019 and November 2020. In those two short notes we highlighted our contrarian approach of going against the then established theme against clothing retail and invested in Prada. Back then we mentioned that the stock price of Prada had taken a beating because of the internal errors namely; high discounting, increased retail footprint and higher exposure to wholesale distribution all in combination drove down the brand value.
Mit freundlichen Grüssen aus Luxembourg
Léon Kirch, CIO & Partner
