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    Prada Reported Third Quarter Earnings And The Mainland Market Shrank By 12%.

    2015/1/8 16:02:00 50

    PradaFinancial ReportsMainland China

    Recently,

    Prada

    The group announced its third quarter earnings this year. The report shows that the performance of the group has deteriorated sharply in the three quarter. Not only has the sales significantly shrunk, but also the profits have been greatly reduced.

    The flagship brand Prada leather products are in a weak demand in Europe and Asia Pacific. The total revenue in the first three quarters changed from a small increase of 1.3% in the first half to 5.6% in the first half and a 44% drop in profits.

    Financial reports show that in the first three quarters of this year, in addition to a small increase in Japan and the Middle East, Prada's performance in the Americas and European markets has also been reduced, even though its sales in the Italy local market, which had previously been awarded, fell by 10.8%.

    The Greater China region, which once pulled the Prada's performance, also lost its momentum and even fell into the worst hit area. Sales dropped by 12% after the exchange rate was removed.

    In the three quarter of a bleak earnings report, there was a rare bright "bright color" from Miu Miu, the first three quarters of Prada.

    Sub brand

    Sales increased by 4% compared with the same period last year, and Prada men's products sales also showed strong growth, up by 14% over the same period last year.

    According to the group's strategic plan, Prada will continue to invest more in Prada's men's products and Miu Miu.

    "Shrinking sales in Greater China" has been repeatedly mentioned in the earnings report of the major luxury brands this year.

    In the first three quarters of this year, Tod's group's sales in China fell by 6%. Although the Richemont group successfully blocked its decline in China this year, it still did not achieve profitability. The sales growth of LVMH group and Salvatore Ferragamo in China could barely be maintained at the low level of 3%-5%.

    Prada group said October

    Greater China

    The performance deteriorates further, which seems to indicate that Prada has little chance of reversing the decline in a short period of time.

    Its chief financial officer, Donatello Galli, declined to anticipate 2015, but said the board would decide on spending cuts next month.

    In addition, the group is likely to halt or postpone the implementation of the planned 50 new stores.

    "We need to adjust our structure to adapt to the current volatile market."

    He explained.

    As of the first half of this year, Prada continued to promote the strategy of store expansion in the world.

    But because sales and administrative expenses are relatively high, the growth rate of revenue is not enough to support the cost of store expansion, resulting in an unexpected drop in profit margins.

    The group announces its first half year's earnings and announces that the number of new stores that the company plans to open will come from

    80 families

    Cut to 65.


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