Prada's worst performance in the market last year increased by 0.3%

Prada, a veteran luxury goods company, made its 2013 financial performance quite ugly. Prada’s net profit for the year ended January 31, 2014 was EUR 62.78 million, which was an increase of only 0.3% from the previous year, making it the worst performer since its listing. Annual revenue only increased by 8.8% to 3,586 million euros, far behind the 29% increase in 2012 fiscal year.

The start of the 2014 fiscal year did not improve. Prada's chief financial officer, Don atello G alli, admitted that there was a negative growth in same-store sales in February this year due to bad weather in the United States and geopolitical factors in Europe. It is difficult to interpret the same-store sales trend for the whole year, so it is prudent to predict at least 3% growth, far below the 7% increase in FY2013 as of January 31, 2014. D onatelloG alli also revealed that the 445 million euros of 80 new stores in fiscal 2014 had been allocated to the budget, which is expected to drive revenue growth of 9% year-on-year, and operating profit will be in line with the 2013 fiscal year.

This performance is basically overseen by major investment banks. Credit Suisse, a Credit Suisse report, stated that it is no longer expected that Prada will have sales growth this year. At the same time, the story of the company's expansion of profit margins is over. What surprised the bank is that the company's management has adopted an aggressive investment plan to support the continuity of the brand and products, which has made the cost structure heavier. Therefore, the bank reduced its 2015-2016 EPS forecast by 14% to 19%.

“The growth of niche luxury brands will grow faster than traditional luxury brands. The slowing trend of traditional super brand growth will continue in the future. Even if they continue to upgrade their product positioning. Lynn will grow faster than LV," said Arm andoBranchini, vice chairman of the Italian Luxury Goods Association.

With the sales momentum of the old luxury goods companies difficult to reverse, dealers were also injured. The latest 2013 annual results of the second-hand luxury goods company's Milan station show that the Milan station achieved a turnover of 698 million HK dollars (approximately 550 million yuan) last year, an increase of 3.2% over the same period of last year; a net profit loss of 37.52 million Hong Kong dollars. , an increase of nearly 1.7 times year-on-year.