Prada 1st Half Revenue Falls 15% as Retail Sales Slow

By Manuela Mesco

MILAN--Italian fashion group Prada SpA (1913.HK) Friday said its first-half revenue fell 15% on the year as retail sales slowed despite the launch of new products.

Net profit fell almost 25% on the year to 141.9 million euros ($158.1 million), while operating profit fell 27% to EUR213.7 million.

Revenue, which totalled EUR1.5 billion, was particularly slow in the leather-goods division and in the Far East region, the company said. Handbags have long been the driver of the company's growth.

Sales in Europe also slowed significantly compared with the previous year, because of a lower number of tourists in the wake of recent terror attacks. One exception is the U.K., where sales were supported by a weak pound following the British referendum in June to exit the European Union, which caused the British currency to weaken, the company said.

Write to Manuela Mesco at [e-mail]

(END) Dow Jones Newswires

August 26, 2016 08:19 ET (12:19 GMT)

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