Hong Kong a drag on Prada

Prada would have had a stunning first half result – if it wasn’t for plummeting sales in Hong Kong and Macau.

The Italian luxury fashion house has just announced a 4.2 per cent increase in net revenues in the six months to July 31 – to Euro 1,824.4 million.

But in the only negative sentiment in its half yearly statement, the company singled out the Asia Pacific market as showing “the same negative trend as in the first quarter of the year”, offset by a positive exchange rate effect.

“Hong Kong and Macau remain the markets which mainly affected the weak performance in this geographical area.”

Network wide sales rose 7.6 per cent at current exchange rates, to euro 1.552 billion. On top of the positive exchange rate effect, the 605 Directly Operated Stores also benefited from general improvement in sales performance.

The European market grew by 12.4 per cent and the Japanese market by 11.7 per cent at constant exchange rates.

By brand, Prada recorded a 5.4 per cent increase at current exchange rates, entirely attributable to the exchange rate effect, “and has been impacted by the negative economic situation in the Asian market”, the company said.

“Meanwhile,Miu Miu continues to grow with revenues up at both current exchange rates (+18.7 per cent) and constant exchange rates (+ six per cent) and an acceleration achieved in the second quarter of the year. Church’s has also achieved sales growth (+18.6 per cent at current exchange rates) with the volumes trend also remaining largely positive. Finally, Car Shoe has performed broadly in line with prior year.”

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