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Weak demand in Japan and a drop-off in tourism in continental Europe and the US depressed sales at Italian luxury fashion brand Prada last year.
For the 12 months to end of January, Hong Kong-listed Prada saw consolidated revenues decline by 9 per cent at constant exchange rates, to €3.18bn.
The drop was led by a 12 per cent fall in revenue from the Asia-Pacific region, where results were marred by a tough first half of the year. However, Prada said sales trends improved in the second half, with China resuming rapid growth in the third quarter and Hong Kong and Macau both posting smaller sales declines.
The main outlier in the region was Japan, where sales fell 13 per cent last year. The drop is the first in five years and comes as the rise in the yen reduced tourist flow from China.
In Europe and the Americas, sales were down 5 per cent and 12 per cent respectively as business continued to be held by the fall in tourism.
“As noted in my comments on the first six-month results, this past year we implemented a profound phase of business process rationalization – still underway – and identified important strategies to secure the Group’s future growth,” said Patrizio Bertelli, chief executive.
Prada will issue its full annual results in April.