April 8, 2016 / 11:45 AM / 3 years ago

Prada posts 27 percent fall in Q4 profit

HONG KONG, April 8 (Reuters) - Italian luxury goods maker Prada SpA reported a 27 percent fall in quarterly profit on Friday, hit by lacklustre sales in China which have waned alongside slowing economic growth and a crackdown on extravagance among public officials.

A weaker yuan and a shift in consumer tastes to more affordable brands also discouraged purchases by mainland Chinese tourists in Hong Kong, a traditional shopping hub, in the three months through January.

Prada’s shares have slumped 42 percent over the past year, underperforming the benchmark Hang Seng Index which has fallen 23 percent in the same period.

Growth in the luxury goods sector has fallen to low single digits from more than 10 percent four years ago, as customers hunt for bargains and favour more affordable labels such as Furla, Longchamp and Kate Spade & Co. (Reporting by Farah Master and Meg Shen; editing by David Clarke)

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