Prada makes lowest profit since 2011

The Italian designer house Prada has recorded the lowest annual profit since its IPO of 2011, but the Miu Miu brand maker believes that a changeover is around the corner, as there are signs of revival following a drop in demand for luxury goods in the Asian market.

The net profit of Prada dropped by 16% to EUR 278.3 million concluding with January, the Milan-based company said, as reported by Bloomberg.

Though the result is lower than the average estimate by analysts, who expected EUR 294.7 million in profit, Prada says that, like other companies in the field, such as LVMH, it has noticed indications of improvement in Asia and Europe.

The drop in demand throughout Asia, where it makes around a half of its revenues, struck the company harder than most of its competitors. However, recent indicators show that the sales started growing again in January, meaning that Prada is recovering.

The company increased the dividend to 12 cents per share, which, as they say, is a sign of its belief in future growth, the New York agency reports.

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