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European luxury product maker, Prada's earnings report shows weaker Euro is not enough and could even turn out to be meaningless if global growth slows down, especially across emerging markets.
Prada reported 23% drop in its net income for the six months to July.
Hong Kong listed Italian fashion house's revenue while gained thanks to weaker Euro but faced heavy headwind from slow down across emerging markets, especially China.
Moreover, Prada has taken additional hit due to sharp slowdown in Macau, China's Autonomous gaming paradise.
Thanks to Euro, revenue rose by 4.2%, while sales dropped by 5.9%.
While Prada's earnings report reveal how crucial China and emerging markets are for developed ones, recent financial market turmoil has revealed, emerging market crisis has the potential to spill the turmoil to developed markets, in spite of they being healthy.
