The Growth Of Luxury Goods Market Is Slowing Down, And Many Brands Of Prada Are Declining.

< p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201312/25/20131225012421_sj.JPG "/" < < > >
< p > < strong > the performance of many brands declined below /strong > /p >
P, < a > Prada < /a > announced last Friday that the third quarter earnings were lower than expected. The group said that sales in the European region may decline in the last two months of the year. Group chief executive PatrizioBertelli said in a conference call, "we are still waiting for the final data, but our annual sales volume in Europe should be slightly down, but not in the global market." < /p >
< p > Prada announced that its net profit in the third quarter increased by 8.6% to 132 million euros. The strong sales volume of the United States and Japan made up for the slowdown in the company's growth in Europe. But many Wall Street analysts had expected net profit to reach 154 million euros. < /p >
< p > according to the third quarter results released by Prada, MiuMiu, Churchs and CarShoe are all negative growth according to the brand. According to the product classification, the net sales of leather goods increased by 10.6% over the same period last year, significantly lower than the 17.5% growth in the second quarter. < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > the growth rate dropped from 4.4% to 1.6%; < /p >
At present, Prada continues to expand its retail business through opening up new outlets. As of the end of October, it has operated 516 Direct stores and 30 franchise stores. In the third quarter, 25 new outlets were opened, while franchised stores remained unchanged. In the third quarter, the same store sales increased by 7%, which is basically the same as that in the second quarter. Prada's net earnings in the first three quarters decreased from 17.5% to 17.1%, mainly due to higher depreciation amortization and tax rates. < /p >
"P" pointed out that Prada's performance in the third quarter was disappointing and the target price was reduced to HK $62. "Prada's regular net profit in the third quarter fell 6% compared to the same period last year, far below the growth rate of 10% and the expected growth of more than 10% in the market." < /p >
< p > < strong > China's regional performance decline < /strong > < /p >
< p > Prada pointed out that the sales volume of < a > /a > in China has always accounted for 1/4 of the total turnover of the group. However, the sales volume of the group in China has dropped like that of its competitors. But PatrizioBertelli said the demand for Chinese tourists overseas remained strong. < /p >
< p > PatrizioBertelli also revealed that the group will increase its advertising budget for its Miu-Miu brand. Sales of the brand declined by 2% in the third quarter, while Prada brand sales increased 10%. LucaSolca, a bank analyst in Paris, France, said: "the development of MiuMiu brand plays a key role in accelerating the future growth of the group". < /p >
< p > but up to now, MiuMiu is still at a stage of negative growth. In addition, Prada's current operating costs are also one of the main reasons for its earnings decline. The bank's international report shows that sales and administrative expenses are higher and operating leverage decreases, resulting in an unexpected drop in operating margins. In addition, it is dragged down by sustained exchange rate losses and sluggish wholesale sales revenue, and revenue growth is less than expected. Although Prada's same store sales growth is in line with expectations, the growth of the main growth market, namely Greater China region, has further slowed down. In terms of income growth, the European market has the biggest slowdown, followed by the Greater China region. < /p >
"P >" the Chinese government's continuing efforts to crack down on luxury goods have more and more influence on Prada. The current fourth quarter performance is weak, and the further slowdown in core European markets between November and December is a cause for concern. " International judgement of Bank of exchange. < /p >