Prada reports slowest half-yearly sales growth in three years
Prada Group reports the slowest half-yearly sales growth in three years as demand weakens in some Asian countries and in Europe amid economic and political uncertainties.
Prada’s revenue rose 1 percent to 1.75 billion euros ($2.34 billion) in the six months through July as demand weakens in some Asian countries and in Europe amid economic and political uncertainties.
“The group has operated in a more difficult political and macroeconomic environment than expected with unfavorable exchange rates and a general fall in consumption,” Prada Group CEO Patrizio Bertelli said in the statement. The company will implement “rigorous” cost controls to protect its margins, he said.
Retail sales in the first half rose 1 percent to 1.44 billion euros, while sales at the Italian retailer’s 566 directly operated stores climbed 5 percent. Prada’s wholesale channel posted a 2 percent sales increase at constant exchange rates.
In Europe, sales fell 1 percent led by a fall in tourism with poor economic environment affecting domestic demand. Sales increased 19 percent in Japan and 14 percent in the Americas, excluding currency swings, Prada said. Sales in the Asia Pacific region rose 2 percent with weak performances in Korea, Hong Kong and Singapore. China sales accelerated to 12 percent, the company added. Hong Kong retail sales tumbled 6.9 percent year-on-year in June, the fifth straight decline.