Prada shares slumped to the lowest in more than a month in Hong Kong after the Italian fashion maker reported its lowest profit in five years amid slowing luxury demand in Asia.

The shares dropped 8 per cent to HK$23.60 as of 2:43 p.m., the lowest level since March 4. That’s below the company’s 2011 initial public offering price of HK$39.50. The share price has slumped more than 40 per cent in the past year. Net income fell 27 per cent to €330.9 million in the year through January, the maker of Miu Miu handbags and Church’s shoes said Friday in a statement. It compared with the analysts’ estimate of €348 million. Profit has missed forecasts in 11 of the past 12 quarters. Sales fell 16 per cent in Asia, its largest market, excluding currency swings.

Prada's chief financial officer Donatello Galli quit earlier this year after more than a decade at the company and the luxury-handbag maker reported a second year of stagnant sales in 2015 that were hurt by collapsing demand in China, the strong dollar and terror attacks in Europe.

Bloomberg