Prada's First-Half Profit Down 23% on Weak Asia Sales

By Manuela Mesco

MILAN--Prada SpA's first-half net profit fell 23%, despite favorable exchange rates as the Italian fashion house struggled to get back on track after a number of weak quarters.

Prada said revenue rose 4% to 1.8 billion euros ($2 billion) in the six months ended July 31, compared with a year earlier, but it was down 5.9% at constant exchange rates, underscoring the support that came from currency fluctuations during the period.

Earnings before interest and tax, or Ebit, dropped 21% to EUR293.2 million.

In the Asia-Pacific region, revenue was down 1.4% at current exchange rates and 17.5% lower at constant exchange rates, as Hong Kong and Macau "failed to show any signs of recovery," the company said. In Greater China, sales were down 1.2% at current rates and 19.3% lower at constant rates.

In the Americas, sales grew 13.5% at current exchange rates, and rose 6.1% at constant exchange rates.

In Europe, revenue grew 4.9% at current rates, supported by tourist flows and a recovery in domestic demand, the fashion house said.

Prada said it was still reviewing its operations, including supply-chain management, manufacturing and logistics, to streamline them and cut costs.

Write to Manuela Mesco at manuela.mesco@wsj.com

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(END) Dow Jones Newswires

September 15, 2015 08:23 ET (12:23 GMT)

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