Prada Sales Slide on Weak Demand
MILAN, Italy — Prada SpA reported the first decline in opening-half sales since its 2011 listing as weak demand in China and terrorist attacks in Europe continued to weigh on the Italian luxury-goods maker. Revenue fell 15 percent to €1.55 billion ($1.8 billion), the Hong Kong-listed company said in a statement Friday, missing the €1.65 billion average analyst estimate compiled by Bloomberg. Earnings also declined, though by slightly less than analysts predicted. As the wider luxury industry struggles for growth, Prada has been hit harder than most. That is partly because its handbags are too expensive and it is been too slow to invest online, according to Sanford C. Bernstein analysts. “Management sees 2016 as a turning point from where the group will return to growth by focusing on the values that made Prada the iconic company it is today,” the company said in the statement. By Paul Jarvis; editors: Matthew Boyle; Tom Lavell. Related Articles:
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