Retail in Asia

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Prada’s 1Q profit falls 44pc on declining sales in Greater China

Investors dumped shares of Italian fashion house Prada on Monday following an ugly earnings report, which prompted a slew of brokerages to slice their price target for the stock.

Hong-Kong listed Prada’s stock slumped over 6 percent to HKD37.35 (USD4.80), its lowest level in more than three years after the company warned of difficult market conditions in Asia-Pacific.

Prada’s first quarter profit fell by a staggering 44 percent to EUR58.7 million (USD66.2 million), stung by ongoing weakness in the group’s key market, Greater China. On the mainland, an economic slowdown and crackdown on conspicuous consumption continue to take a toll on sales. Macau and Hong Kong sales have also taken a hit from the decline in Chinese tourist numbers.

(Source: CNBC)