Prada Prada'S Poor Performance

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Xiaobian of the network to introduce the performance of Prada Prada again knock alarm bell net profit plunged 21%.

According to reports, Italy luxury fashion brand Prada (Prada) recently announced its interim results as of July 31st this year, with a net profit of 245 million euros, down 21% from the same period last year, and then sounded the alarm for the company. The growth rate of revenue was low, mainly due to the weak demand in Asia Pacific and Europe, and offset the surge in sales in the Americas and the Middle East.

During the period, the net income of Prada was 1 billion 751 million 300 thousand euros, an increase of 4.5% based on fixed exchange rate, a slight increase of 1.3 percentage points compared with the same period in 2013.

The net sales generated by the channel amounted to 1 billion 442 million 200 thousand euros, up 1.4% from the same period in 2013.

Prada said Asia Pacific revenue fell by 2.1% in the first half of this year, mainly due to weak market demand in Korea, Hongkong and Singapore. However, China's market revenue increased by 11.8% without excluding foreign exchange.

In addition, European market revenues declined slightly, while Middle East revenue grew by 21%.

Prada shares fell 1.34%, to 51.5 yuan, a 52 week low.

As a result of the negative impact of exchange rate fluctuations, plus the increase in sales expenditure after retail expansion, pre tax profit (EBITDA) was 492 million 800 thousand euros, down from the first half of 2013, and the gross profit rate was diluted, making the net profit rate of EBITDA down from 31.9% to 28.1%.

The pre tax profit (EBIT) of the period amounted to 373 million 200 thousand euros, compared with 458 million euros in June last year.

The total tax burden was 113 million 100 thousand euros, representing a decrease of 17 million 500 thousand euros compared with the same period last year.

In the first half of 2014, the net performance of Prada was 245 million euros, accounting for 14% of the net proceeds.

The capital expenditure for the period is 289 million 600 thousand euros, which is mainly used to expand, update and consolidate the global retail network.

The net financial position of Prada was negative at 140 million euros during the period, a slight decrease from January 31, 2014.

The Prada Group expects that the situation in the second half of 2014 will be roughly the same as in the first half, although the group will introduce a reduction.

Measures will improve marginal profits, but profits will continue to be under pressure. It is estimated that growth will further slow down in the coming year, due to the weak demand in China and Europe and the corruption in the interior.