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MILAN, Italy — Prada SpA reported first-half revenue that missed analysts' estimates as demand for its handbags and wallets in Hong Kong and Macau continued to wane.
Sales rose 4 percent to 1.82 billion euros ($2 billion), the Milan-based luxury goods maker said Friday in a statement. Analysts predicted 1.87 billion euros, based on the median of nine estimates compiled by Bloomberg.
The Asia-Pacific region, Prada’s most important market, showed a “similar negative trend” to the first quarter, when Greater China sales fell 19 percent excluding currency effects, Prada said. Revenue in its wholesale business dropped 14 percent as Prada has trimmed its network of distributors. The company is also opening fewer stores and introducing more bags priced between 1,000 euros and 1,200 euros as it attempts to reignite demand amid a clampdown on extravagance in China.
"Sales in the first half of 2015 reflect an economic and exchange rate landscape that remains rather volatile," Chief Executive Officer Patrizio Bertelli said in the statement.
By Thomas Mulier; editors: Matthew Boyle, Phil Serafino.
