Poor Performance In Luxury Market Prada Decline In Net Profit Of Peak Group

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Xiaobian of the network to introduce the luxury market growth is weak Prada, the peak net profit decline.

Recently, the first half year performance report released by Prada (Prada), a luxury group listed on the HKEx, showed a net profit of 245 million yuan in the half year ended July 31, 2014, a decrease of 21% compared with the same period last year, and a net operating income of 1 billion 750 million euros, an increase of 1.3% over the same period last year.

Prada (Prada) expects that the situation in the second half of 2014 will be roughly the same as in the first half of the year.

Although the group will introduce cost cutting measures to improve marginal profits, profits will continue to be under pressure. It is estimated that growth will further slow down in the coming year under the influence of weak demand in China and Europe.

Liu Jianxiu, senior consultant, pointed out that Prada (Prada) net profit decline is mainly due to: on the one hand is affected by domestic anti-corruption; on the other hand, when other enterprises embrace the Internet quickly and launch the Internet marketing platform, Prada still focuses on the development of real shop, which has an impact on the overall performance of enterprises.

Another major reason is the continued downturn in the Asian luxury market.

In May this year, the bain report of the consulting firm pointed out that the growth of the global luxury market this year is expected to be only 4% to 6%, unchanged from 2013.

Among them, China's market growth is expected to be 2% to 4%, much lower than the two digit growth achieved in 2010 and 2011.

Affected by this, the world's second largest

In the first five months of this fiscal year (April to August), the total sales volume increased by 4% over the first 1% months of this fiscal year. However, as the US dollar and Japanese yen depreciated, the figure increased by only 1% after the euro was converted into euros.

Management points out that the slow growth in sales is mainly due to the sluggish Asian market.

In the financial statement, the sales contraction in the Greater China region has offset the growth of other markets in the Greater China region, making the sales of 40% of the group's sales in the Asia Pacific region fall 2% from the same period of the same period.

Japanese sales dropped 8% compared to the same period last year after the exchange rate was cut off, and expanded to 14% according to the actual exchange rate.

Europe and the Middle East recorded a 6% growth rate before and after the exchange rate.

The Americas showed the best performance. After the exchange rate was eliminated, the growth rate of 12% was 6%, according to the real exchange rate.