On Tuesday trading, Hong Kong-listed luxury goods group Prada SpA Italian Prada Group‘s share price hit a low of HK $ 27.2 since its listing, its only early March 2013 when a peak of HK $ 81.5 1/3, even compared with Credit Suisse Group AG (VTX : CSGN) of Credit Suisse to give a very low target for the low price of HK $ 27.5, which is Hong Kong’s retail market is currently empty willingness to sing the strongest known investment bank.
Although mid-September, Prada SpA Prada Group’s profit-expected interim results, let Prada Hnadbags UK (1913.HK) Prada Group earnings day following the September 16 shares rose in early trading, and thus creating a “super-expected” which performed. Although earnings after one-day stock price rose, but in fact accompanied by continued harsh retail environment in Hong Kong, and many investment banks bearish report on the Hong Kong market and the Hong Kong Stock Exchange listed retail companies continue to profit warning “raid” and the negative earnings, overall Retail stocks are extremely weak, and since September 16 nearly 40 days, Replica Prada Bags SpA (1913.HK) Prada Group shares actually plunged up to 18%.
The third quarter, “than-expected” performance Prada Prada SpA Group mainly due to the market for the world’s worst-performing luxury goods group Prada Outlet SpA Group already low expectations. It is no fashion Chinese network data, as of the first half of fiscal 2015 at the end of 7, Prada SpA Prada Group net profit fell 23.0 percent to 188.6 million euros, but the market is expected to only 175.4 million euros. In addition, the interim profit decline than the market is not due to their own business has improved, opposite its main Asia-Pacific market by lower sales in Greater China plunged 19.3% at constant exchange rates as high as 17.5 percent decline in influence. In the case of their own performance were unable to obtain short-term improvement in the luxury goods industry have chosen to cut costs to hedge profit slowdown and decline, had already undertaken a number of brand shops plan has been reduced salary freeze for executives, and other measures to reduce incentives and benefits .
With simultaneous cost reduction plan also includes its slowing rate of expansion. As of July 31 the first half of the fiscal year Prada SpA Group is principally engaged brand Prada outlets only net increase of 10 stores, Miu Miu Handbag is more outlets only net 5, and the previous fiscal year, respectively, the two brands a net increase of 32 outlets and 19, even if the two brand new stores over the same period last same period this year as much, respectively, 12 and 10. Another group also smaller of the two brands is weak Church’s and Car Shoe is total net closed four stores.
Prada SpA Prada and LVMH SE aspects and other luxury goods group Fake Burberry HnadbagsPlc, even though China has repeatedly said the market is still valued, and hope that the market expansion, but the reality is in fact vary. There is no doubt that the market position of the Chinese mainland market unshakable, but in fact more important is China consumer can, which is even worse than the market itself, because including purchasing, including, Chinese mainland consumers overseas luxury consumption twice as much in China’s domestic market. Currently in the Chinese mainland luxury market so-called “expansion” is actually limited to first-tier cities, and mainly to increase the store area, renovated and moved the crowd, rent the more expensive main downtown business district, and for the implementation of the actual low-level city The closed shop, shrink store strategy. Therefore, due to excessive previously stationed in the city, according to the number of stores, the traditional major luxury goods stores in the future of the Chinese market will be shrinking changed.
As close to the Hong Kong market has been shrinking store strategy is no doubt, and now the Hong Kong market is the weakest of the global luxury goods market. Despite the weak market, but retail rents in Hong Kong remains high, commercial real estate consulting firm Cushman & Wakefield Cushman & Wakefield recently released “Main Streets Across The World 2015/2016” report shows that despite the difference in Dodge City, Hong Kong’s retail market, tenants continue forced to rent, but the market is the most central business district of Causeway Bay retail rents still ranked second in the world, second only to New York’s Fifth Avenue. Prada SpA Group Chairman Carlo Mazzi had early September had said group is seeking to rent minus Hong Kong and Macau markets, and lamented the Chinese market is no longer the “El Dorado (El Dorado)”.
October, LVMH SE, Kering SA’s Louis Vuitton Replica and Replica Gucci, Burberry Outlet Plc and other display multiple group showed June – September quarter compared with March – June quarter results better somewhat Slip (Note: LVMH SE, Kering SA’s fiscal year cycle with the same calendar year, while the Burberry Plc fiscal year period April 1 – March 31), LVMH SE indicates that China’s stock market volatility and impact on middle-class consumers related. China A-share market suffered a concussion again this year, which in June was a turning point, for the retail industry, the negative impact mainly in August and September. And the above-mentioned three different groups, Prada SpA Prada Group’s earnings cycle more natural year delayed a month, its third quarter fiscal year just from the beginning of August, while another big important market for the luxury goods industry in the US market, consumer sentiment is also From August began to turn bad, which is from the earnings cycle and Prada SpA Prada Group’s earnings cycle is very close to many US department store industry, the recent downturn in earnings can witness, and monthly data Swiss watch industry association of the same side that the US luxury market three performance is poor quarter and October.
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The upcoming release next month in the third quarter of Prada Group’s performance has been worse than the market average, and therefore also because the earnings period coincides with a more unfavorable retail environment, and the brand in addition to continued cost-cutting plan and is more common in other irritants Main actions of business, so the opportunity to turn over the material that the Italian group almost zero short-term, coupled with the recent Credit Suisse, Goldman Sachs, UBS and other intensive released a report badmouthing Hong Kong retail market, especially high-end retail market, and the Hong Kong Stock Exchange-listed Prada Replica Handbags UK Group SpA shares no doubt by its spread, its share price dip is still a lot of space, especially after its release in two weeks may be quite unfavorable third quarter earnings.