Prada (SEHK: 1913) 1H16 RESULTS: REVENUE HEADWINDS FROM REDUCED TOURISM SPENDING IN EUROPE AND SLOWDOWN IN ASIA

Executive Summary

• Prada reported revenue of €1,554 million for the six months ended July 2016, down nearly 15% year over year and missing the consensus estimate of €1,642 million.
• Reported EPS was €0.06for the period, down almost 26% but above the consensus estimate of €0.05.
• The weakness in the top and bottom line in 1H16 was due to a broad-based decline across all regions and product categories. The Asia-Pacific region and the leather goods product category were the worst hit. The company expects a return to sales and profit growth next year.