Prada's profit plummets because of weak Chinese market

Prada's profit plummets because of weak Chinese market

Chinese consumers spent less over the last 9 months, meaning Italian fashion brand Prada's profit plummeted a lot in the current fiscal year.

Weak Chinese yuan

Prada's 9-month turnover grew 1.2 % to 2.6 billion euro, but its profit fell 26 % to 235.1 million euro. If only the third quarter is considered, its profit drop is even more spectacular, down 38 %. If exchange rates had remained level in that quarter, turnover would have dropped 10 % to 748 million euro.

 

A lousy Chinese performance is largely to blame for the weaker results, because the weaker Chinese yuan currency meant that people did not spend as much as before. Only Europe and Japan were growth areas for Prada, with 7.6 % and 4.6 % growth in the previous 9 months and taking into account that exchange rates remained level. American turnover dropped 7.6 %.

 

CEO Patrizio Bertelli has acknowledged his company will try to lower costs and limit the number of new store openings to 10 in the upcoming year. In 2014, Prada opened 54 stores.

Questions or comments? Please feel free to contact the editors


FrieslandCampina sells fruit juice division

17/08/2017

Dairy company FrieslandCampina has sold its fruit juice division, which also contained the Appelsientje brand to Dutch investment firm Standard Investment.

Carlsberg's turnover increases despite lower volumes

16/08/2017

In the first half of the year, Danish beer brewer Carlsberg’s turnover grew 2 % to 31.8 billion krona (4.3 billion euro). The improves sales for its more expensive beers, like Grimbergen, contributed to this turnover increase.

Losses keep growing for HelloFresh

14/08/2017

Over the course of the first half of 2017, meal box delivery service HelloFresh has seen both its turnover and its losses grow significantly. This gives mixed messages in the preparation of its IPO, which is planned for the fall of 2017 to create room for more investments.

Italian gelato is European market leader

11/08/2017

Italian cuisine is revered all across the globe, with people often thinking of pizza and pasta. However, Italians also have an ironclad reputation when it comes to ice cream. This is also reflected in sales, as Italians are the European market leader.

Oprah Winfrey and Kraft Heinz join forces

10/08/2017

American tv star Oprah Winfrey has joined forces with Kraft Heinz to develop a range of “healthy and nutritious soups and side dishes”. The range, currently only available in the United States, should help Kraft Heinz generate turnover growth once more.

Ahold Delhaize continues to struggle in Belgium

09/08/2017

Belgian-Dutch supermarket group Ahold Delhaize has had a very good second quarter, with the company thinking last year's merger could result in lower costs than previously anticipated. On the other hand, Belgium's performance is still weak.

Back to top