Things still aren't looking too great for Prada SpA. Following a tough holiday season, where sales at its namesake brand declined 8 percent, the company said it generated €3.55 billion (about $3.86 billion) in net sales in the 12 months ending Jan. 31, down 1 percent from the year before. Profits declined 28 percent.
Where did things go wrong? According to the company, a lack of demand and slow tourism in Europe contributed to a 1 percent decline in sales for the company, while sales in the Far East saw a 5 percent dip, due to deteriorating market conditions in Macau and Hong Kong. Sales were stronger in the Americas (up 8 percent), Japan (also up 8 percent) and the Middle East, which was up 10 percent, but saw a slowdown in the second part of the year.
Brand-wise, Prada — which accounts for 83 percent of the company's sales — continues to be outperformed by the Group's other labels. Prada's sales were down 1.7 percent for the year, while Miu Miu's were up 4 percent. Church's, meanwhile, saw a 15 percent sales increase, and Car Shoe, 12 percent.
In a statement, Prada SpA CEO Patrizio Bertelli said that 2014 was "a year of transition for the Prada Group on its journey of growth." Here's to a better 2015.