Prada profit down on China and Europe slump

Prada profit down on China and Europe slump
A Prada shop in Shenzhen, China. Photo: Prada photo: Shutterstock
Prada, the Italian luxury goods company, reported a drop in 2014 net profit on Monday due to weaker sales in China and Europe.

The company, whose brands include Miu Miu and Church's, said net profit for last year dropped 28 percent to €450.7 million as sales overall fell one percent.

It is the first drop in annual profit that the company has reported since listing on the Hong Kong Stock Exchange in 2011.

Sales in Europe fell by 1.1 percent compared to 2013 due to a decrease in the number of tourists to the continent and weak domestic demand, the Milan-based company said in a statement.

The situation in the Asia Pacific region was more challenging, with sales falling 5.5 percent, mainly due to weak performance in Hong Kong and Macau, where “market conditions deteriorated significantly in the second half of the year”, the company said.

The different timing of the Chinese New Year also affected sales in the greater China area in January, the company added.

But the Japanese market continues to thrive, with sales growing 7.7 percent, as well as the Middle East, where sales were up 9.9 percent.

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