Italian luxury goods company Prada SpA reported its first drop in annual net profit since it listed in Hong Kong four years ago, as growing retail sales in the Americas and Japan failed to offset declines in Greater China and Europe.
The company reported on Monday its 2014 net profit fell 28 percent to EUR450.7 million (USD489.8 million), slightly below forecasts, as overall annual sales dropped 1 percent. Asia-Pacific sales, which accounted for more than a third of the Milan-headquartered company’s business, also fell 3.1 percent.
Like other luxury goods makers, Prada has seen weaker sales in China and Hong Kong amid a government crackdown on corruption, including bribery which often takes the form of lavish gifts to officials.