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MILAN, Italy — Prada SpA reported a 44 percent drop in third-quarter profit as weaker spending by wealthy Chinese consumers weighed on the luxury-goods maker's revenue growth.
Net income fell to 74.5 million euros ($92 million) in the three months through October from 132.6 million euros a year earlier, the Milan-based seller of brands including Miu Miu and Church’s said in a statement today. Sales fell 5.6 percent to 801 million euros.
A lack of new handbags in the 1,000-euro to 1,500-euro price range is weighing on Prada, according to Mario Ortelli, an analyst at Sanford C. Bernstein.
At the same time, pro-democracy protests in Hong Kong have disrupted business in greater China, where the company gets about a quarter of its sales. Burberry Group Plc said last month it sees a tougher market for luxury goods after currency fluctuations and weak Asian demand led to a drop in earnings.
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Prada has said profit margins will remain under pressure in the second half, while annual sales will be little changed.
By Andrew Roberts, with assistance from Kana Nishizawa; editors: Celeste Perri, Robin Ganguly, Thomas Mulier.
