MILAN — Despite a growth in the Americas and Japan hurt by a decrease in revenues in the Asia-Pacific region and depressed consumer spending in Europe, Prada SpA saw its net profit in the nine months ended Oct. 31 drop 27.6 percent to 319.3 million euros, or $427.8 million, compared with 440.9 million euros, or $582 million, in the same prior-year period.
Company revenues were in line with last year, edging down 0.9 percent to 2.55 billion euros, or $3.41 billion, compared with 2.57 billion euros, or $3.39 billion. At constant exchange rates, sales would have risen 0.5 percent.
Dollar figures were converted at average exchange rates for the period in question.
Prada chief executive officer Patrizio Bertelli said “2014 is proving to be a more challenging year than expected. On top of the ongoing difficult international economic environment, the luxury goods market is undergoing a certain readjustment, the extent of which is not yet entirely clear.”
That said, Bertelli said he was “confident in the medium-term growth prospects of the market, but also aware of its increasing level of complexity.”
As a consequence, the executive expressed his conviction “that we have made the right choice in continuing to prioritize the group’s medium-term development, through investments focused on achieving qualitative and stylistic excellence. We are also working on making our business structures more efficient and improving the operating performance of our stores, in order to ensure the group achieves satisfactory levels of profitability.”