Prada Hits Record Low After Missing Forecast

In What's New, Industry News by Accessories Staff

prada-storefront-stratford-london-v2Prada SpA has some serious woes. Shares of the Italian luxury goods hit a record low in Hong Kong trading, dropping 6.4% after it posted a 38% plunge in Q3 profits, missing analyst estimates.

Slumping sales due to depressed economic growth sales in Greater China was a major factor.

Prada reported Tuesday net income fell to 46.5 million euros ($51.1 million) in the three months through October from 74.5 million euros, lower than the average estimate of 60 million euros from six analysts compiled by Bloomberg.

Prada’s poor Q3 results significantly under-performed global peers and “signify Prada’s structural problems are likely to be more intense than expected,” Bocom International analyst Phoebe Wong wrote in a note, citing in particular the company’s loss of market share to younger and more affordable rivals, according to Bloomberg.

 

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