Though Prada's been putting on as stoic a face as ever, the harsh reality is that the fashion industry giant is suffering a plummet in profits after a long period of unstable and seriously slow growth. The company's stocks have entered a period of volatility as investors try to size out Prada's prospects, but with plans to open nearly 80 new stores the growth and therefore potential earnings may well offset present difficulties.
Prada SpA, the Italian luxury-goods maker, fell the most in almost 12 months in Hong Kong trading after reporting first-quarter profit growth that decelerated to the slowest pace in at least a year.
Prada dropped 6.6 percent, headed for the biggest drop since June 21, to HK$68.40 as of 10:01 a.m., compared with a 3.2 percent decline in the city’s benchmark Hang Seng Index. Net income rose 14 percent to 138.2 million euros ($184 million) in the three months ended April, Milan-based Prada said in a statement on June 11. Hong Kong’s markets were closed yesterday for a public holiday. (Read More)