(Bloomberg) -- Prada SpA reported the first decline in opening-half sales since its 2011 listing as weak demand in China and terrorist attacks in Europe continued to weigh on the Italian luxury-goods maker.
Revenue fell 15 percent to 1.55 billion euros ($1.8 billion), the Hong Kong-listed company said in a statement Friday, missing the 1.65 billion-euro average analyst estimate compiled by Bloomberg. Earnings also declined, though by slightly less than analysts predicted.
As the wider luxury industry struggles for growth, Prada has been hit harder than most. That’s partly because its handbags are too expensive and it’s been too slow to invest online, according to Sanford C. Bernstein analysts. The company is seeking to address those issues amid two years of stagnant sales and its lowest profit in five years.
“Management sees 2016 as a turning point from where the group will return to growth by focusing on the values that made Prada the iconic company it is today,” the company said in the statement.
Prada plans to double its e-commerce sales over the next two years by increasing the number of categories it offers online, particularly shoes, and expanding its social media activities.
Earnings before interest, tax, depreciation and amortization fell 25 percent to 330 million euros in the six months, according to the statement. Analysts estimated 327.8 million euros.
The results were released after the close of trading in Hong Kong, where Prada shares closed up 2.1 percent at $HK21.75.
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