Italian mainstay Prada, which has been struggling with a sslowdown in demand for accessories, saw profits fall overall, though some growth in the Middle East and North America helped balance out the slowdown. Like its well-know competitors, Gucci and Louis Vuitton, Prada has seen growth drop sharply over the last year, as savvier consumers turn away from the logo-heavy brands that have expanded aggressively over the last few decades.
The Wall Street Journal reports that "A particular problem lies in Prada's leather goods, which have traditionally offered the sector fat profits. Revenues from leather goods fell 4.9% in the first half, largely due to a drop in demand in Europe and Asia, where shoppers tend to favor leather bags and other accessories over clothing... the drop in leather goods sales, the cost of an aggressive expansion of its store network—Prada opened 75 stores in the last year—and the lack of strong revenue growth conspired to push profits down. "
Interestingly - menswear is turning a reliable profit for the fashion titan - the company said its menswear has grown in all geographic areas and that it's been focusing on the men's line as a source of fresh growth for the future. Maybe it's time for a Kanye x Prada collab....
Want to do your part to preserve the storied fashion house? Find a Prada store with their locater here.
(via Wall Street Journal)