Luxury Prada Will Be Closed Shop

　　 Luxury goods The industry has been losing ground in the Hongkong market, and is the latest Italy luxury group. Prada SpA Prada.

Peninsula HK The Peninsula Hotel is now under the banner of the grand hotel. According to the hotel, the PradaSpA Prada and its lease will expire before the end of the month. The berth area is 3000 square feet, which is about 333 square meters. The rent is now estimated at HK $800 / square foot, with an annual rent of HK $29 million.

As we all know, luxury goods in Hongkong. market It is the most vulnerable regional market in the past two years, and PradaSpA Prada group is one of the worst performing industries in the past two years.

Although the luxury market in Hongkong fell by only 0.1% in October, it has performed best in the past 26 months. However, the market predicts that the Hongkong luxury market will not be able to reproduce the ten year performance of the gold market after the free trade in the future. It will take time for the bottom to stabilize, while Hongkong real estate professionals predict that the retail rental of Hongkong will drop sharply in 2016, so it will stabilize in 2017. Therefore, the two phase trade-off, the luxury industry in the next two to two years will be a high probability of withdrawing rent events, the specific rate will be the owner of the rent reduction attitude.

According to the world clothing and shoe net, the hotel will split the Prada Prada The Peninsula Hong Kong flagship store into four small shops with a 25% rent reduction.

In addition to PradaSpA Prada group, due to unable to bear the high rent, recently, Hongkong central and Tongluowan have a large number of international brands to withdraw shop. The package RalphLauren Corp. (NYSE:RL) Ralph Lauren group recently closed its flagship store in Hongkong Causeway Bay Tongluowan Lee Gardens Li Yuan. RalphLauren Ralph Lauren Lee Gardens Lee Garden flagship store opened just two years ago. It opened in October 2014 and closed for only two years. The US fast fashion brand Forever21 closes 50000 square feet of Tongluowan flagship store, the British luxury brand Paul Smith closes the Times Square flagship store, the American youth clothing brand Abercrombie&Fitch closes the Pedder Street the pall street Pedder Building to complete the row to open the flagship store for four years. Last year, TagHeuer tigers and Coach Cox also closed the flagship store in Tongluowan and central respectively. The four floor Abercrombie&Fitch flagship store has a monthly rental of HK $7 million, and the rent will expire in 2019. The early withdrawal of the store will result in a one-time cost of $16 million for the group.

However, if we observe the above withdrawal group, we find common ground is that retail companies, which has been extremely bad in recent years or has encountered difficulties, is no exception to PradaSpA Prada group.

According to the world clothing and shoe net, as of the first half of July 31, 2016, the revenue of PradaSpA Prada group fell 14.8%, from 1 billion 824 million 400 thousand euros in the same period last year to 1 billion 554 million 200 thousand euros, and net profit fell 24.7%, from 188 million 600 thousand euros in the same period last year to 141 million 900 thousand euros. In the first half of the fiscal year, the company's retail revenue plummeted 17.8% to 1 billion 276 million 600 thousand euros, 15.9% lower than the fixed exchange rate, and its four major markets' retail revenues all recorded double-digit declines. Retail revenues in Italy, Europe, the Americas and the Asia Pacific market plummeted 21%, 20.5%, 17.3% and 22% respectively. As the group's most important big China market, revenues plunged 24.4% to 278 million 700 thousand euros and 21% at fixed exchange rates.

In addition to Macquarie, the current mainstream market has seen the decline of Prada SpA Prada group, although its share price has risen 7.68% this year.

In early November, UBS released the latest report, which reiterated the Prada SpA's "sell" rating, and pointed out that the fundamentals of Italy group failed to support its October share price rise. According to the bank, from the end of September to the beginning of November, the performance of Prada SpA Prada was strong, mainly due to the revival of Chinese consumers' demand for luxury goods and the market's confidence in the launch of the novice bag of Italy group. But UBS believes that the new products of Prada SpA Prada account for a relatively small proportion, and the price threshold is high, so it lowered its EBITDA3% in fiscal year 2017 to reflect the continued loss of PradaSpA Prada group's market share, but the bank rose to Prada SpA Prada group EPS13% to reflect the depreciation rate of 50 million euros, so the target was raised from HK $17.2 to HK $19.5.

Prada SpA Prada group reported a HK $25.95 gain of 1.17% on Wednesday.

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