Hong Kong-listed Prada acquires Fifth Avenue building home to New York flagship store for US$425 Million

Prada’s sales slowed in the third quarter, with net revenue missing analysts’ estimates and registering at €1.11 billion (US$1.18 billion). The Prada label, which accounts for more than 80 per cent of sales, saw its growth slow to 5 per cent in the quarter, down from 15 per cent in the previous one.

The conflict in the Middle East and its wider global repercussions have had an impact on business, Prada’s CEO, Andrea Guerra, told analysts on an earnings call in October.

Sportswear maker Li Ning buys US$282 million office property in Hong Kong

But some luxury brands have shown resilience amid a global slowdown in demand for luxury goods. Hermes sales jumped in the third quarter as wealthy shoppers in the US and Europe splurged on the French company’s pricey Birkin and Kelly bags. The strength of the US performance was buoyed in particular by the label’s Madison Avenue store, which opened a year ago, chief financial officer Eric du Halgouet said on an October call.

Fifth Avenue took the crown from Hong Kong’s Tsim Sha Tsui as the world’s costliest shopping haven last year. At US$2,000 per square foot a year on average, it has continued to hold on to its title for a second straight year, according to Cushman & Wakefield. Via Montenapoleone in Italy’s fashion capital of Milan comes in at second place with rents of US$1,766 per square foot.

Tsim Sha Tsui at US$$1,493 per square foot is third but retains its ranking as the most expensive retail destination in Asia-Pacific.

Additional reporting by Cheryl Arcibal

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