Its sales rose by 6.5%, to 828 million euros, although this increase is actually due to the weakness of the euro. Disregarding the currency effect, their incomes have fallen more than 5%.
Prada has published disappointing results for its fiscal first trimester. In particular, its net profit was 58 million euros, slightly more than half of the same period last year and also below the 85 million euros expected by the analysts who follow its value. Its sales rose by 6.5%, to 828 million euros, although this increase is actually due to the weakness of the euro. Disregarding the currency effect, their incomes have fallen more than 5%.
According to the company and analysis of luxury expert, Lesson, «The main reason for this decline is the drop of sales in China». This is not an exclusive Prada effect, as it has affected almost all companies in the sector. However, Prada has been more penalized because it has a greater presence in the region than other industry giants.
In particular, sales in the Asia-Pacific region fell a significant 17%, although most of this decline corresponds to its stores in Hong Kong and Macao. These results have had a bad reception in the stock, and its value has yielded nearly 5%, trading at its lowest level since February 2012, below the 40 dollars. Prada yields more than 50% from the highs reached in 2013.
The problem is that with the current results, the value is still trading at a PER of about 30 times above the industry average, so that only an improvement in their accounts will be able to encourage purchases again.
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