Prada is the latest victim of China’s slowdown
Hong Kong (CNN Business)Prada is feeling China’s economic slowdown as it struggles to keep pace with its global rivals in the biggest market for luxury goods.
The company’s shares plunged almost 11% in Hong Kong on Monday after it reported disappointing earnings late Friday. Revenue for 2018 was about 1% below analyst forecasts, and operating profit came in 14% under expectations, according to Refinitiv data.
Prada posted an 8% overall increase in greater China sales last year, but the company said it had experienced “some slowdown” in the second half of the year, mostly due to lower demand in Hong Kong and Macau that it attributed to the weaker Chinese yuan.
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