Prada has reported its weakest full-year profit since it floated on the stock market in Hong Kong six years ago.
Prada's net income fell 16 per cent to €278.3m (£236.1m) for the year to 31 January.
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Net revenues for the group came in at €3.18bn, a drop of nine per cent on a constant currency basis. Retail sales fell by 14 per cent to €2.63bn and wholesale revenues fell 15 per cent to €504.4m. In Europe and the Americas sales fell by five per cent and 12 per cent respectively.
Prada kept margins level at 72 per cent, which it said was "thanks to relentless focus on industrial efficiencies". The Hong-Kong listed fashion house has been pushing forward with its cost cutting, and managed to bring operating expenses down by 10 per cent last year.
At time of writing, Prada's shares were up 0.58 per cent.
Why it's interesting
Prada said today that its performance in Europe was "mixed". Tourists have driven growth in the UK, as they flock to London to pick up designer goods and take advantage of the fall in the value of sterling.
However, in France, tourist numbers have been falling, hitting Prada's sales. In addition, there has been a sales slowdown in Hong Kong, Macau, and Japan, key markets for the fashion house.
What Prada said
Prada chief executive, Patrizio Bertelli, said: "The Prada Group has delivered a satisfactory set of results in-line with market expectations for 2016, a challenging year of transition for the company.
"Our offer has been enriched with products that stand out for their innovative style and quality, while at the same time we have also streamlined and rationalised the cost structure across all business lines."