Chinese boost not big enough to hit Prada target

 
City A.M. Reporter
ITALIAN luxury fashion house Prada posted a 7.6 per cent rise in first-half profits yesterday, lifted by solid growth in its key greater China market but the result was lower than what analysts had expected.

The maker of luxury leatherware and Miu Miu-brand dresses said its net profit for the six months ended July was €308m (£258.6m), up from €286.4m but lower than forecasts.

Last month, Prada brushed off luxury industry concerns about slowing growth in China and said that demand from the country helped to drive an 11.6 per cent rise in sales for the six months ended July.

Prada said current full-year revenue forecasts estimated by the market did not take fully into account the weakness of the dollar and the yen against the euro.

“These foreign exchange movements might not be fully considered by forecasts of the market and will weigh on the top line,” Prada chief financial officer Donatello Galli said in a conference call about the luxury company’s first-half results.