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    Prada'S Net Profit Fell By 28%. Luxury Industry Is Still In The Lead.

    2014/12/11 20:21:00 12

    PradaLuxury GoodsLuxury Brands

    Recently,

    Prada

    Prada SpA announced its third quarter earnings far below expectations. The company warned that the hardship of the luxury industry is not yet over.

      

     

    Milan based Prada group said sales in the third quarter ended October were 6% lower than in the previous quarter, mainly due to the impact of Hongkong's bad luck on its business (Prada's shares are listed in Hongkong).

    In the first nine months of this fiscal year, Prada's net profit was 319 million euros ($392 million), down 28% compared to the same period last year.

    Prada group introduced the company's financial performance: "those are right.

    Consumer

    The economic and political plight that has had a negative impact has not been alleviated. "

    What the company refers to is not only "occupy China" activities, but also China's current anti-corruption operation.

    The anti-corruption campaign has led to a sharp decline in excessive consumption, especially for officials and their families.

    Prada also pointed out that its sales in Macao also declined sharply, and Macao's casinos were increasingly left behind.

    Prada said: "

    Luxury goods

    The market is changing and the extent and nature of the change are not entirely clear. "This implies that the problem is not only existing in the Chinese market.

    So far this year, Prada's sales in the Greater China region have dropped by 4% compared with the same period last year. In its base camp Europe, sales declined by 2% due to the double impact of domestic consumption and the decrease in tourists, especially those who had spendthrift Russian tourists.

    At the same time, Prada's sales in the Americas

    increase

    6%, sales in the Middle East increased by 10%.

    But sales in those areas are not even as high as half of the company's sales in Greater China.

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