As we learned back in March, Prada didn’t have a great 2014. Net sales for last year dipped 1 percent, while profits were down 28 percent. Now, the first set of results for 2015 are in, and, at least profit-wise, things aren’t looking much better.
For the three months ended April 30, the company’s profits fell 44 percent due largely to “the continuing difficult market conditions in the Asia Pacific area, especially in Hong Kong and Macau,” according to CEO Patrizio Bertelli. Chinese tourists still aren’t showing up and shopping luxury brands the way they used to. It’s a problem that isn’t unique to Prada, as Kering recently reported that poor performance in the Asia-Pacific region contributed to Gucci’s 8 percent sales decline in the first quarter. That said, Asia does comprise the largest geographic chunk of Prada’s sales, so slipping up there does a lot of damage to its sales overall.