Milan—Prada may have been one of the luxurygoods sectors worst performers the last two years, but the brand, which also owns Miu Miu and Church’s, had a 4% gain today as its fourth quarter sales were in line with analysts’ estimates.
Shares of brand have fallen 3% since Jan. 1, and the stock was down 36% in 2014 and down 7% in 2013.
Even though revenue fell 1% to 3.55 billion euros (about $4 billion) in the year ended Jan. 31, Prada was in line with analysts’ estimate for 3.7 billion euros in sales.
Prada has informed investors in December it planned to open fewer stores this year and introduce more handbags and leathergoods in the 1,000 to 1,200 euro range.
“We see this as being good news,” Alessandro Migliorini, analyst at Mirabaud Securities said about the shop numbers. “Prada needs to get the collections right and get the brand heat back on before they accelerate store openings again.”
By region, Japan and the Americas both posted 8% increases at current exchange rages. Europe was down 1% on weaker tourist demand.
Sales in Asia Pacific dropped 5%, mostly due to declining sales in Hong Kong and Macau due to political upheaval and China’s crackdown on bribes using luxurygoods.