- Stock fell to lowest level since March 4 in Hong Kong
- Asia, company's largest market, saw sales drop 16 percent
Prada SpA shares slumped to the lowest in more than a month in Hong Kong after the Italian fashion maker reported its lowest profit in five years amid slowing luxury demand in Asia.
The shares dropped 8 percent to HK$23.60 as of 2:43 p.m., the lowest level since March 4. That’s below the company’s 2011 initial public offering price of HK$39.50. The share price has slumped more than 40 percent in the past year.
Net income fell 27 percent to 330.9 million euros ($377 million) in the year through January, the maker of Miu Miu handbags and Church’s shoes said Friday in a statement. It compared with the analysts’ estimate of 348 million euros. Profit has missed forecasts in 11 of the past 12 quarters. Sales fell 16 percent in Asia, its largest market, excluding currency swings.
Prada’s Chief Financial Officer Donatello Galli quit earlier this year after more than a decade at the company and the luxury-handbag maker reported a second year of stagnant sales in 2015 that were hurt by collapsing demand in China, the strong dollar and terror attacks in Europe.