Luxury brands Prada, Ferragamo risk competing IPOs

By Elisabetta Andreis

MILAN, May 12 (Reuters) - Italian luxury brands Prada and Ferragamo look likely to wait for better market conditions to list their shares, probably after the summer, financial sources said, but competing timing could hurt their plans.

Both brands have said they plan to list this year and people familiar with the matter said in November they were aiming for initial public offerings (IPOs) in the second quarter.

But market turbulence and a falling dollar mean they are likely to move back their plans, financial sources said.

Prada, whose designer Miuccia Prada specialises in innovative fashions, has abandoned listing plans before and faces a credibility problem if it doesn't go ahead this time, fund managers said.

Its strengths are its rapid growth, territorial diversity and the appeal of newer brand Miu Miu, repositioned to attract wealthy younger clients.

The Milan fashion house "intends to wait for the half-year which ends on July 31, and especially for the shows in July and September, which will provide some visibility on revenues until spring/summer 2009," one financial source said.

Ferragamo, best known for its scarves, ties and leather shoes and bags, also seems to prefer to wait for better times.

"If the market continues to look more reassuring, (Ferragamo) could list in the second part of the year," said a source close to the operation. But its big exposure to the dollar could cause it to wait.