Luxury retailer Prada saw a hit in its net profit of 28% in 2014 as sales dropped in its main markets China and Europe.

The year ending January 31st saw the firm’s net income at Eu451 million (£330 million), down from Eu628 from the previous year and failing to hit analysts’ expectations.

Most of the sales slump came from Hong Kong and Macau, which brought sales in the Asian region as a whole down 3% as conditions deteriorated “significantly” as well as a fall in Europe of nearly 5%, which a slight rise in Japan and the Americas failed to offset.  

Prada has said it will have to cut costs and open fewer stores than planned. "The group is working to contain costs in the short-term and on broader measures that will increase the overall efficiency of the business," it commented.