Prada Drops On Weak Quarterly Results: Hong Kong Mover
Prada SpA (1913), the Milan-based fashion goods maker, dropped to its lowest level in more than a month in Hong Kong trading after fourth-quarter earnings disappointed some analysts.
The maker of handbags, shoes and apparel fell 4 percent to close at HK$74, the lowest level since Feb. 19. The benchmark Hang Seng Index was little changed.
Prada’s same-store sales growth decelerated in the three months ended Jan. 31, mainly because of the later timing of the Chinese New Year in 2013, the designer said in a statement April 5 after the market closed. Margin as measured by earnings before interest and tax widened to 27 percent of sales from 24.6 percent a year earlier, according to the statement.
A “lower-than-expected margin expansion” in the fourth quarter led to operating profit that was below forecasts, analyst Candy Huang, an analyst at Barclays Plc, wrote in a research note dated today. The outlook for sales at stores that have been open at least a year is “moderate,” Huang wrote.
Barclays lowered its rating to equal-weight from overweight.
Net income jumped 45 percent to to 625.7 million euros ($811 million), according to the statement. Fourth-quarter profit gained 37 percent to 217 million euros.
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