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Prada Sales Slide on Weak Demand

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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Burberry becomes first luxury brand to personalise on Pinterest Burberry has become the first luxury brand to offer customers a personalised experience on Pinterest, letting them create customised make-up boards to promote its new ‘Cat Lashes Mascara’ product. The personalisation works by asking visitors three questions. Their answers, along with their initials will be combined to create the personal Pinterest board.

10 Most Powerful Luxury Fashion Brands In The World The luxury market has been growing significantly over the past couple of years and is still continuing on an upwards trend. Experts forecast an annual growth rate for the luxury goods market of 5-6% between 2013 and 2015. The Brain & Company estimated the luxury market to be valued at $274 billion, with a potential to reach an astonishing value of $290 value by 2015. Whilst the luxury market has been dominated by Louis Vuitton, which continues to be the most valuable luxury brand on a global scale, other names have been emerging as potential market leaders. Prada seeks younger customers in bid for growth Image copyright AP Italian luxury fashion group Prada has predicted a return to growth as it seeks to connect with younger customers through online sales and flexible pricing. First half profits fell 25% to €330m (£282m) due partly to falling demand in China and Italy. But Prada said it saw 2016 as "a turning point."

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Luxury fashion's slowly coming around to plus sizes This article is from Pulse, Digiday’s quarterly print magazine about the modernization of media. This is a peek at the third issue, which focuses on the current state and future potential of video. To receive the full 80-page issue and subscribe to a year of Pulse, visit Fashion designer Prabal Gurung was sitting in a taxi on his way to a Victoria’s Secret show last November when a bus roared past. The advertising on the bus — Lane Bryant’s “I’m No Angel Campaign,” — turned out to be the answer to a question he’d had for two years. American Luxury Companies Remain Cautious as Weak Traffic Weighs on Sales NEW YORK, United States — Luxury-goods sellers are keeping the champagne on ice. Despite posting earnings that topped analysts’ estimates for their most recent quarters, Coach Inc., Ralph Lauren Inc. and Michael Kors Holdings Ltd. all offered less-than-rosy forecasts. The gloomy outlooks weighed on shares of Coach and Michael Kors, while Ralph Lauren’s stock rose on optimism that a turnaround plan from its new chief executive officer is gaining traction. Executives at the companies — which sell merchandise ranging from $400 handbags to $5,000 pea coats — say decreased tourism to the US and dwindling spending are hurting sales at department stores as well as their own locations.

H&M Accused of Working With Underpaid and Overworked 14-Year-Olds in Myanmar Factories Fast fashion comes at a cost, as shown by a new book published in Sweden. One of the largest retailers in the world is reportedly guilty of working with preteen employees. H&M, which has a global presence and is headquartered in the Scandinavian nation, has contracts with two factories in Myanmar that have employed children as young as 14 to work more than 12 hours a day, according to Modeslavar (“fashion slaves” in English). And they make under $3 a day, the lowest minimum wage in the world, reports The Guardian.