Prada 2016 full year profit drops 15.9%

Italian luxury fashion group Prada on Wednesday reported a 15.9 percent fall in annual profit as global luxury spending remained soft and as it sold more accessible products in competitive market.

In the year ended Jan. 31, Prada reported net income of 278.3 million euros (236.48 million pounds), down from 330.9 million euros a year earlier. Analysts were expecting net income of 296 million euros, according to Thomson Reuters SmartEstimate data.

In February, the Italian group said saw its sales accelerating in the past months, particularly in Greater China and Russia, pointing to an improving outlook after sales slumped last year.

France’s LVMH , the world’s biggest luxury group, in January predicted a “relatively easy” first half of 2017, but warned the second half could be “more difficult”.

Prada’s shares have risen more than 30 percent so far this year, outpacing a 9 percent rise in the benchmark Index.

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