NewLuxury brand maker Prada posts 23 per cent net income fall as businesses in Hong Kong and Macau contract
Income at €188.6m as continuing contraction in sales and margins in HK, Macau to blame
Italian luxury goods maker Prada posted a 23 per cent decline in net profit for the six months to the end of July, with a continuing contraction of business in Hong Kong and Macau mostly to blame.
The Milan-based company said net income fell to €188.6 million from €244.8 million a year earlier.
"The contractions recorded in Hong Kong and Macau had a significant impact on performances for the period, both in terms of sales and margins," Prada, which also owns the Miu Miu, Church's and Car Shoe brands, said in its results statement.
The slowdown in the two cities saw Prada's net sales in the Asia-Pacific region fall 1.4 per cent to €610.3 million, against €619.2 million in the same period last year.
"The performance was significantly penalised by Hong Kong and Macau which failed to show any signs of recovery throughout the six-month period at industry level," Prada chairman Carlo Mazzi said. "The global economic environment is still volatile and recent instability in Asia has not helped ease the situation so visibility will probably remain low for the time being."
Given this challenging environment, he said the group would continue to focus on supply chain management, product offering and pricing structure, aiming to streamline operations and reduce costs.