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Shares of Prada hit record low after profit plunges 38%
[HONG KONG] Shares of Prada plunged 6.4 per cent on Wednesday after the Italian luxury goods maker posted a 38 per cent plunge in quarterly profit, weighed down by slumping sales in Greater China as economic growth slowed.
The stock slid to HK$24.9, the lowest level since the company listed in June 2011. That compared with a 1.7 per cent rise in the benchmark Hang Seng Index.
Prada said it would reduce price gaps for its products across regions to discourage tourists from travelling to countries where goods can be bought more cheaply.
It will also consider selective shop closures in the coming year and limit the number of openings to 10 to protect margins.