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(Bloomberg) -- Prada SpA reported first-half profit that missed analysts’ estimates and warned that its turnaround plan may take longer than expected as the Italian maker of $2,200 Esplanade handbags and $495 Velcro sandals struggles to stem a decline in sales.
Net income fell 18 percent to 115.7 million euros ($140 million) in the six months through July, Milan-based Prada said in a statement Friday. Analysts had predicted 143 million euros, according to data compiled by Bloomberg. Revenue dropped 5.7 percent.
“The group is confident that its action plan is the best way to return to steady growth in revenues and margins, albeit aware that benefits may take longer than expected,” Prada said.
The maker of Miu Miu pumps and Church’s dress shoes embarked on a wave of store closures in 2016 as profit fell to its lowest level since its 2011 initial stock sale. Prada was hit harder than most by a downturn in demand across Asia, where it gets about half its revenue.
Shares of the Hong Kong-traded Italian fashion house gained 6.3 percent this year, trailing behind a 50 percent increase in Kering and a 21 percent gain in LVMH.
LVMH said in July that comparisons in the second half will be harder and the weaker dollar will weigh on earnings.
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