Prada'S Performance Continues To Disappoint The Market, Net Profit Plunged 15.9% In Fiscal 2016

It is understood that

Italy luxury goods group Prada SpA 1913.HK (latest annual report)

The group's performance continued to disappoint the market. The group's annual sales and profits both plummeted for three consecutive years. It is the only large luxury group with such poor performance in the industry, especially in the second half of 2016.

Prada group, which is about to move its financial year ahead of schedule for two months and parallel natural years, plummeted 15.9% in the 2016 fiscal year ending January 31, 2017, falling from 278 million 300 thousand euros in 330 million 900 thousand in fiscal 2016 to 0.129 in earnings per share.

In the 2016 fiscal year, Prada Group recorded a total revenue of 3 billion 184 million euros, a 10.3% decrease compared with 3 billion 547 million 800 thousand euros in fiscal 2015, and a 9% decrease in fixed exchange rate.

The Italy group said 2016 was a challenging year for Prada group and a year of pition.

During the pition period, the group has formulated specific plans to develop the brand, and has carried out reforms in the main business processes, including reconstruction.

And digitalization, and further streamline the plan.

Under the streamlining plan for cost reduction, group EBIT recorded 431 million 200 thousand euros in fiscal year 2016, although it was 14.3% lower than the 5.029 euro in fiscal 2015, but its decline was less than net profit. It only declined for three years in a row. However, EBIT profit margins continued to decline, from 2014 to 2015 in fiscal year 19.8% and 14.2% to 2016 in fiscal year 2016.

During the period, the group's gross profit was 2 billion 289 million 100 thousand euros, down 10.8% from the 2 billion 567 million 600 thousand euro in the 2015 fiscal year, and the gross margin fell 50 basis points to 71.9%.

EBITDA recorded 653 million 400 thousand euros, down 27.6% from 802 million 800 thousand euros in the 2015 fiscal year, and the EBITDA profit margin 20.5% plummeted by 210 basis points.

In the 2016 fiscal year, Prada group reduced its sales cost by 8.7% to 895 million euros, and 980 million 200 thousand euros in fiscal 2015, but the sales rate rose to 50 from 50 base points to 28.1%.

During the operating expenditure period, 1 billion 857 million 900 thousand euros decreased by 10% compared with 2 billion 64 million 700 thousand euros in the 2015 fiscal year, but the rate increased by 20 basis points to 58.4%.

By the end of January 2017, Prada group had operated 620 direct outlets worldwide, with a net increase of 2. The sales in the 2016 fiscal year dropped by 13.9%, and the fixed exchange rate declined by 13.1%. Sales in the wholesale business period rose 13.4%, and the fixed exchange rate increased by 14.6%.

Prada group accounted for nearly 1/3 of the Asia Pacific market in 2016 sales fixed exchange rate recorded a 12.1% decline, the actual decline of 14.2% to 993 million 200 thousand euros, mainly by the Chinese market in the first half of the year sales double-digit slump, the end of the year to resume growth.

The European market, though affected by terrorist attacks, is still the best performing market. During the period, the fixed exchange rate in the market dropped by only 5.2%. The Russian market which basically lifted the Ukraine crisis recorded a double-digit rebound, while the euro effect reversed the final growth rate in the second half of the year. The US performance is similar to that in the Asia Pacific region, with a fixed exchange rate decline of 12% and a decline of 12.8% in the fixed exchange rate in the Japanese market. The appreciation of the yen has severely hurt the consumption of the tourism market.

Despite the sluggish performance, the stock price of Prada Prada SpA (1913.HK) has been strong in the past six months, but its shares rose 1.31% at HK $34.70 on Wednesday, which has soared 31.94% this year and 34.24% over the past year. The market recorded a 30 month low of the company's bearish rate. The market price agency IHS Markit Ltd. (NASDAQ:INFO) data showed that Prada SpA SpA (1913.HK) Prada group fell to less than 2% in late January, and 13.5% in September 2014.

At present, the Italy group is still holding 80% of the absolute holding power of the Prada Holding BV BV by Patrizio Bertelli and Miccia Prada holding company. The investment bank, the fund Massachusetts Mutual Life, the JPMorgan and the company share about 16% of the group's shares, and the market circulation shares are few, and only three of the investment banking funds have only continued operation.

The strong share price of Prada SpA (1913.HK) Prada group is mainly driven by the overall rebound in the luxury goods market, especially in the second half of 2016, when China's luxury market rebounded sharply.

More interesting reports, please pay attention to the world clothing shoes and hats net.