Prada Performance Bottom, Luxury Industry Profits In The First Half Or Down 36%

According to the latest report, it is up to June 30th this year.

Prada (01913.HK)'s growth and share price has lost the same industry this year, Prada.

Business growth has also made analysts cautious.

Contrast Gucci parent company Kai Yun group.

The first half of 2016, released by the group and LVMH of Louis Vuitton, Prada, is the bottom line of the luxury sector, both in terms of share prices and performance.

Forecast organic growth in the first half of the year fell 10% in the first half of the year, of which retail business fell by 13%, but wholesale business rose slightly by 0.5%, mainly due to the expansion of Prada business to the Net a Porter and mytheresa.com of Prada.

The bank expects total sales in the first half of Prada to reach 1 billion 658 million euros, and pre tax profit will drop 36% to 188 million euros.

Pointed out that due to the weakness of the luxury goods industry and the decrease in the number of visitors worldwide, the forecast for Prada 2017 sales was more pessimistic down to 7%, originally forecast to decline 3%, and 2017 and 2018 earnings per share forecasts were down by 11% and 10% respectively.

Looking back at the luxury industry 2 years ago, Gucci, which once struggled with Prada and profits, has fully recovered. The latter showed an accelerating trend in the second quarter of this year, with a 7.4% strong growth in sales.

Operating profit rose 7% to 536 million 900 thousand euros in the first half year.

The creativity and creativity of Alessandro Michele, the brand creative director, is recognized not only by fashion experts in the industry, but also gradually by consumers.

The Chinese market has become the worst hit area for sale. Prada group has zero sales growth in 2015. Data show that Prada group closed at least 11 stores in 2015. There is no doubt that the pformation of China's economic mode and consumption environment has brought serious challenges to the global performance of international luxury brands. Especially since China successfully surpassed the United States and Europe with 29% of the world's luxury consumption share, the failure to design the Chinese market is a fatal blow to any international luxury brand.

Some analysts say that Prada is a victim of brand weakness. In recent years, one of the most store brands has opened up, leading analysts to doubt whether it will overexpose itself.

Since 2015, Prada's stock price has fallen by more than 100%, and its market value has fallen below HK $60 billion.

In order to save the sluggish performance, Prada began to repair the overexposure of the brand, and reduced the number of shops to be renovated in the mainland and Hongkong. A group spokesman said that in the next two years, the group will optimize its retail network, rationalize its inventory and close or reduce the shops that are not profitable.