Prada Earnings Trail Estimates as Sales Slow in Asia, Europe

MILAN, Italy — Prada SpA, an Italian maker of $2,950 leather handbags, reported third-quarter profit that trailed analysts' estimates as sales slowed in Europe and Asia and unfavorable currency swings weighed on growth.

Net income rose to 132.6 million euros ($181 million) in the three months through October from 122.1 million euros a year earlier, Milan-based Prada said today in a statement. Analysts predicted 153 million euros, according to the average of estimates compiled by Bloomberg. Revenue rose 7.1 percent to 848 million euros, also trailing estimates.

Prada joins European luxury-goods makers including LVMH Moet Hennessy Louis Vuitton SA and Gucci owner Kering SA in reporting slowing revenue growth as demand wanes in China and the euro strengthens against the Japanese yen. The owner of shoemaker Church's said in September that the euro's gains on foreign-exchange markets will weigh more heavily on full-year earnings than some analysts anticipated.

“Unfavorable exchange rates and softening consumption patterns in some regions could weigh on results and thus will require increasing attention by the management in order to ensure profitability and continue the retail expansion,” Prada said in today’s statement.

Third-quarter sales advanced 13 percent, excluding currency swings.

By Andrew Roberts; Editors: Celeste Perri, Tom Lavell