Franchising, retail, business
08/08/2014
Sales of Italian luxury group Prada have slowed as demand in Asia and Europe weakens.
Prada’s revenue rose just one per cent to 1.75 billion euros ($2.34 billion) in the six months through July. The Asia Pacific markets recorded overall revenue growth of just two per cent at constant exchange rates with performance remaining weak in Korea, Hong Kong and Singapore.
Revenue in Europe declined one per cent both at constant and current exchange rates, due to a fall in the volume of tourism and by the negative general economic environment which has hit domestic consumption.
Meanwhile, the positive trend in the Americas continues. The retail channel recorded 14 per cent growth at constant exchange rates and was sustained by both domestic consumption and a greater contribution from tourist spending.
“In the first six months of the 2014, the group has operated in a more difficult political and macroeconomic environment than expected with unfavorable exchange rates and a general fall in consumption,” said CEO Patrizio Bertelli.
The group plans to continue its expansion plans despite the challenging conditions.