Prada Net Profits Down 28% Over China Sales Slump

Italian luxury goods retailer Prada has been hit by a 28% profit fall following sales drop in its major markets - Asia and Europe.

According to BBC, the firm's net income was €451m ($490m; £330m) for the year ending 31 January, down from €628m a year ago, falling short of analyst expectations of €476m.

Its Asian sales fell 3% in the time period with much of the decline coming from the Hong Kong and Macau markets.

A combination of a clampdown on corruption by the Chinese government, and pro-democracy protests closing down major roads in Hong Kong, leading to the decline in the number of mainland Chinese tourists, has led to several retailers reporting a slump in sales.

In other major markets like Europe, Prada sales fell nearly 5%. The losses were given a boost by sales growing slightly in North America and Japan, where sales jumped nearly 8%.

The company plans to cut costs and open fewer stores than they had planned because of the results.