News Column

Asian buyers fall out of love with Prada products

June 6, 2014

JOSEPH MILLIS



ITALIAN luxury fashion house Prada announced yesterday that its first quarter sales fell amid a spending slowdown by Chinese tourists in Europe, coupled with unstable exchange rates.


The brand said that net income for the three-month period ending 31 April fell 24 per cent to 105.3m (85.5m), missing analysts' estimates of 129.7m.


The high-end fashion company's sales fell 0.6 per cent to 777.7m, below analysts' forecasts of around 813m. At constant exchange rates, sales rose 3.8 per cent.


In April, Prada said it expected sales to grow 9 per cent this year, with an operating profit margin in line with 2013 and like-for-like sales growth of at least 3 per cent.


However, Prada said that lacklustre local consumer confidence and a decline in travellers from Asia on a 4.1 per cent fall in European sales were to blame for the fall in income.


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Source: City A.M. (UK)


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