Prada's profit takes a hit from China

Luxury retailer Prada says the company will implement cost-cutting measures

Italian luxury goods retailer Prada saw its net profit fall 28% last year as sales slumped in major markets of China and Europe.

The firm's net income was €451m ($490m; £330m) for the year ending 31 January, down from €628m a year ago.

The amount also fell short of analyst expectations of €476m.

Its Asian sales fell 3% in the time period with much of the decline coming from the Hong Kong and Macau markets.

"Results in the region were hit by the negative performances recorded in Hong Kong and Macau," Prada said in a statement on Monday.

The Asia-Pacific region accounts for more than a third - over 35% - of the group's sales, making it Prada's biggest market.

A combination of a clampdown on corruption by the Chinese government, and pro-democracy protests closing down major roads in Hong Kong, leading to the decline in the number of mainland Chinese tourists, has led to several retailers reporting a slump in sales.

In other major markets like Europe, Prada sales fell nearly 5%. The losses were given a boost by sales growing slightly in North America and Japan, where sales jumped nearly 8%.

The company has said that it would have to cut costs and open fewer stores than they had planned because of the results.