Luxury goods group Prada says it will open fewer stores this year than last after its first half net profit dropped.

Prada has reported net profit fell 21 per cent to 244.8 million euros ($314.3 million) as net revenue grew just 1.3 per cent to 1.75 billion euros.

Sales in Asia Pacific increased just 2.1 per cent at constant exchange rates as performance in Korea, Singapore and Hong Kong remained weak.

Sustained by domestic consumption and a greater contribution from tourist spending, retail business in the US rose 14.2 per cent at constant exchange rates.

European sales fell slightly due to weaker tourist flow and negative general economic environment.

CEO Patrizio Bertelli said the current climate shows no sign of improvement and the difficult economic and geopolitical conditions are negatively influencing consumer attitude.

The company has become cautious, planning to open 65 stores this year instead of 80 as originally planned.