The Italian group, which has said it expects to return to profit growth this year after being hit by the downturn in global luxury spending, reported on Monday a 10 percent decline in revenue for 2016.”However positive progress in sales trend were seen in the second half of the year, particularly in December 2016 and January 2017,” Prada said in a statement.Business improved after a 25 percent drop in group net profit in the first half of 2016. Sales in Greater China grew in the final quarter of 2016 and Russian sales were up “double digit”.CEO Patrizio Bertelli said in the statement he was confident that a restructuring of the business, which was still under way, and the group’s new strategies would ensure its future growth.Greater China is Hong Kong listed Prada’s biggest market. Last year the group also saw sales in Japan fall 13 percent at constant exchange rates, after five years of consecutive growth, due to fewer tourists from China.The Milan based group is trying to turn itself around by cutting back its retail network and selling more fresh and accessible products, as it faces rising competition from new brands and traditional rivals like Gucci.
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