Prada hits worst performance on its IPO last year

Prada, a veteran luxury goods company, released its financial report on April 2. As of January 31, 2014, Prada's net profit rose by only 0.3%, making it the worst performer since its listing.

According to the 2013 fiscal year consolidated performance report released by Prada, Prada's annual revenue as of January 31, 2014 only increased by 8.8% to 3.59 billion euros (about 30.5 billion yuan), and net profit was 628 million euros.

China Investment Research Fellow Xiong Xiaokun told the reporter that the main reason for poor Prada performance was the impact of the global macro economy. The European region, which is the home of consumption, was greatly affected by the macroeconomic recession, and the Chinese tourists’ consumption and visit volume increased rapidly. Slowly, the Japanese market tends to be weak due to rising consumption taxes.

After successfully listing on the Hong Kong Stock Exchange in June 2011, Prada has remained profitable for more than three years but the net profit growth has been shrinking. The company’s net profit growth was as high as 44.9% last year, and it was as high as 72.2% in fiscal year 2011.

From the perspective of sales regions, the Asia-Pacific region (excluding the Japanese market) is still the largest contribution of Prada sales. In fiscal 2013, Asia Pacific revenue was 1.29 billion euros, accounting for 36.4% of all regions. However, in the 2013 fiscal year, revenue growth in the Asia Pacific region was 11.4%, and the increase rate was 14% under the fixed exchange rate, which was far below the 32.9% in the previous year. Among them, Greater China revenue increased by 15% to 826 million euros at a fixed exchange rate.

For the 2014 fiscal year's expectations, Prada is not underestimated.

According to Sina Finance, Prada Management expects the performance to be weaker this year, and the same-store sales will only have a low single-digit growth. In order to recover the disadvantages, the company intends to strengthen its own production capacity in the future, hoping to re-browse the signboards with “Made in Italy” and traditional craftsmanship.

In this regard, the investment adviser Xiong Xiaokun told the "Daily Economic News" reporter, the greatest value of luxury products is the design and technology, due to the rapid expansion of the imitation luxury goods industry, weakening the high-end luxury goods, a limited number of characteristics, therefore, luxury The company’s return to the exclusive “Made in Italy” can better control channel resources and re-establish the market position of luxury goods scarcity.