Ferrari's luxury ambitions face reset as Prada hits the skids

Milan

FERRARI NV's ambition to compete with luxury-goods brands like Hermes or Prada has failed to make headway in the six months since its initial public offering, raising pressure on the new board to reset the sports-car maker's strategy.

Scepticism over the company's prospects has caused the stock to tumble about 20 per cent since its October listing. The new board of directors, loaded with luxury experts, must address the challenge of pouring resources into its bread-and-butter cars, maintaining the pricey presence in Formula One (F1) racing and extending the brand into more high-end products, all without the financial muscle of a strong parent company.