Prada profit nearly halved

Prada profit nearly halved

Luxury brand Prada's profit has dropped nearly 50 % in its third quarter. It had expected a small setback, but that was much worse than anticipated. Asian demand was particularly weak.

Asian drop

Prada's net profit was 132.6 million euro last year, but 2014's third quarter only resulted in a 74.5 million euro net profit, which is a 44 % drop. Turnover also dropped 5.6 % to 800.7 million euro.

 

Particularly the sales in October were very low, because of abysmal Hong Kong and Macau sales. In total, Asian sales dropped 9 %, while Europe also fell back 4 %. North and South American sales grew 2 %.

 

Prada says that the luxury market is changing and that the company is now trying to reinvigorate its sales, but that has led to even lower profit numbers for the time being. One strategy is to introduce a new collection of handbags, which has traditionally been an important source of income for Prada. Nevertheless, handbag sales also suffered in the third quarter, with a 9 % sales drop. 

Questions or comments? Please feel free to contact the editors


Albert Heijn pulls plug on AH to go in Germany

14/12/2017

Albert Heijn has decided to shut down its German AH convenience stores. According to the supermarket company, the chain does not have enough room to grow in Germany despite having built up its presence in the past five years.

Carrefour continues to lose French market share

13/12/2017

Kantar Worldpanel’s new numbers underline the fact that Carrefour CEO Alexandre Bompard is facing a huge challenge. Out of every supermarket chain, his chain suffered the largest market share loss in France last month.

New Metro still struggles in the Netherlands and Belgium

13/12/2017

German food retail group Metro says it has created a solid foundation for new growth in its first year since it stepped away from its non-food activities. The Benelux are still worrisome however. 

Tax on meat incoming: will meat become the new tobacco?

12/12/2017

Researchers and elected officials all across the world think there will be a meat tax within the next decade, designed to discourage people from eating meat. The rapid growth of meat consumption has disastrous consequences for our climate and health.

AB InBev opens new brewery in China

12/12/2017

Brewery AB InBev opened a new brewery in China, which will produce 1.5 tons of beer. It will be the company’s largest Asian brewery and the company’s goal is to take full advantage of the growing Chinese middle-class.

Dr. Oetker acquires Belgian industrial bakery

11/12/2017

German Oetker Gruppe, known for its frozen Dr. Oetker pizzas, has acquired Belgian industrial bakery Diversi Foods. The company is a major frozen bread supplier for Belgian and Dutch supermarket chains.

Back to top