(Bloomberg) -- Prada SpA reported the lowest full-year profit since its 2011 initial public offering as the maker of Miu Miu apparel was hurt by a slump in Asian demand for luxury products.
Net income fell 16 percent to 278.3 million euros ($295 million) in the year through January, the Milan-based group said in a statement Wednesday. That missed the average analyst estimate of 294.7 million euros.
The company has been hit harder than most luxury peers, given a bigger focus on the Asian market, where it gets about half its revenue. Recent indicators have been better: sales returned to growth in January, an initial sign that Prada is on the mend. Industry leader LVMH said this week it had seen a rebound in demand from Asia.
“The business climate was mired in uncertainty, due to ongoing geopolitical tensions of global impact, as well as new events that have suddenly altered economic balances around the world,” Prada Chief Executive Officer Patrizio Bertelli said in the statement.
The company has said it hopes to speed up recovery by boosting e-commerce, particularly in footwear, and by reaching out to clients more aggressively on social media. The company has also introduced more entry-priced accessories to hook a broader range of consumers.
--With assistance from Lisa Pham
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