Italian luxury goods group Prada posted a 20.6% drop in first-half net profit, weighed by sluggish consumer demand amid an uncertain economic outlook and unfavourable exchange rates.
The maker of luxury leatherware and Miu Miu-brand dresses said its net profit for the six months ended July amounted to €244.8m, down from €308.2m a year earlier.
Second-quarter net profit was €139.5m, according to Reuters' calculations, lagging analysts' average forecast of €172.7m.
That compared with net profit of €170.1m a year earlier and €105.3m in the previous quarter.
In August, Prada said preliminary consolidated net revenue gained 1% year-on-year to €1.75 billion in the six months ended in July, while its 566 directly operated stores achieved revenue growth of 5%.
It said it would control costs to protect margins.
A slowdown in China, once the sector's growth engine, has hit profits across the luxury goods business.
LVMH has seen a drop in demand from Chinese buyers in its home market and overseas, as well as a slowdown in Hong Kong due to political unrest, the world's biggest luxury group said in July after posting below-forecast second-quarter sales and profits.
