HONG KONG, China — Investors will be looking for updates from Prada SpA on its recovery momentum when it reports annual earnings this week, as a drop in bearish bets removes the potential for a share-price boost resulting from a short squeeze.

The Italian luxury-goods maker, which said growth resumed in January after reporting a nine percent drop in annual sales at constant exchange rates, has been battling weak Chinese demand and a terrorism-inspired slowdown in European tourism. It’s hoping to boost e-commerce sales by increasing the number of categories it offers online, particularly shoes, and expanding its social media activities.

“We expect management to provide an update on the firm’s ongoing strategic initiatives, particularly around digital and retail profitability efforts,” as well as on the cost containment program “successfully” started over a year ago, Morgan Stanley analysts including Louise Singlehurst wrote in a March 31 note.

Any negative surprises on Wednesday may hurt the stock as bearish bets have hovered below 3 percent of free float since late January, down from a record 13.5 percent in September 2014, according to IHS Markit Ltd. data. Prada Holding BV has an 80 percent stake in the company, while Massachusetts Mutual Life, JPMorgan Chase & Co. and Harris Associates collectively hold almost 16 percent of shares, according to data compiled by Bloomberg.

“Share price support from short squeezes has decreased greatly,” Sanford C. Bernstein analysts including Mario Ortelli wrote on March 20. “Any share unloading by these three shareholders will likely see a large hit to the share price.”

By Lisa Pham; editors: Divya Balji and Jonathan Annells.