Italy Fashion Group Prada Worries That Tourists Will Reduce Sales.

Italy

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(Prada) recently worried that with the deepening of the eurozone crisis, spendthrift tourists would be scared away. These tourists provided a protective barrier for luxury companies to cope with the uncertain global economic situation, and helped manufacturers of the leather handbags and shoes that people dreamed of to raise their quarterly profits.

The Milan based color MiuMiu dress manufacturer doubled its first quarter profits.

But the company failed to exempt concerns about the euro zone, the depressed US economy and the possible slowdown in Asia.

"If the Greek crisis hits Spain or Italy, it will reduce the flow of tourists.

If tourists are affected, they will impact us. "

Carlo Mazae, vice president of Prada, said.

When Prada grew by 57% in the first 3 months to the end, it achieved the best results in the European market, confirming the strong appeal of the brand.

Sales in the Asian market accounted for about 38% of its total sales, an increase of 47%, while its US market revenue increased by more than 1/3.

Retail is Prada's biggest driver of growth. The Group recognizes 260 stores (mainly in new cities) to expand its retail business in the next 3 years.

Mazie said Prada has 402 direct outlets, less than larger counterparts, such as LV (Louis Vuitton) and PPR group's Gucci.

Prada said its net income rose 47.9%, higher than expected.

It will focus on cash flow generation and financial flexibility, and be alert to crises.

The quarterly net profit doubled to 121 million 700 thousand euros, far exceeding the expected value, indicating that the company's retail expansion initiatives in the Asian market have been successful.

According to Bain, an American consulting firm, China's luxury market sales are ready to rise 18% to 20% this year, exceeding the expected figures for the European, US and Japanese markets.

Driven by retail sales and lower base price, the company's pre tax profit rose to 16 thousand and 480 euros, an increase of 106%.

The luxury industry has recovered from the 2008 financial crisis, witnessing the process of cutting the personal disposable income of the wealthiest shoppers.

In March, based on concerns about China and the US economy, Tiffany (Tiffany) lowered its sales and profit expectations for its fiscal year, while Tod 's and Brunello Cucinelli had already seen a negative growth in sales in the depressed Italy.