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Prada shares fell 9% on Monday, as the luxury goods maker recorded its first annual increase in sales in five years, while CMB lowered its price target for the company.
Prada shares in Hong Kong fell 9.2%, dropping to their lowest level in two months. Revenues for the twelve-month period ending in December increased by 2.8% to 3.14 billion euros, as the recovery program began to take shape. However, this does not correspond to a Refintiv survey providing 3.17 billion euros.
China Merchants Bank has reduced its price target to HK $ 28.84 per share, from HKK to US $ 28.67, suggesting unexpected increases in production costs and higher operating costs.
Sales growth in China slowed in the second half of the year, registering an 8% year-on-year increase, at constant exchange rates, compared to 17% growth in the prior year. first half of 2018. The brand had recorded half growth as "outstanding results in China".
CMB highlighted a weakening of the renminbi and a "declining macroeconomic environment in Hong Kong and mainland China" to explain the slowdown in growth in the second half of the year.
The slowdown in the Chinese economy and repression of the resale sector in the country have weighed on consumer spending in the world's second-largest economy.
Prada shares are now down nearly 52% from May's peak.
The Hang Seng benchmark was up 0.7% on Monday.
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