Italian luxury goods maker Prada SpA on Friday reported a 25 percent drop in net profit in the first half of the year on the back of lower sales, which dropped 15 percent.
Prada said net profit in the first six months of 2016 fell to 141.9 million euros, or $157.7 million, as sales decreased to 1.55 billion euros, or $1.73 billion.
The company said that conditions remain “challenging” in Asia-Pacific while noting that it detected the “first signs of improving trends in mainland China and stabilization in Hong Kong and Macau.”
Europe remained impacted by a decline in tourism, the company said in its presentation, although local consumption was “resilient.”
Russia recorded double-digit organic growth. The U.S. market “remains tough,” the company said, while Latin America “performed very well.”
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The company said that it had made “strong progress” on cost savings, with the EBIT margin increasing to 14 percent of sales, up from 12 percent of sales in the second half of 2015.
(Dollar figures are converted from euros at average exchange rates for the period in question.)
