Prada rides luxury boom while mass retailers struggle as Chinese demand flags [Video]

Prada SpA should confirm the resilience of demand for luxury brands in Asia when it reports earnings, shrugging off lukewarm consumer sentiment in China.

Japan has been among the world’s strongest luxury markets as a weaker yen attracted tourists looking for bargains and domestic demand remained solid. Strong earnings at LVMH Moët Hennessy Louis Vuitton SE, Richemont and Hermes International SCA were all underpinned by growth in Japan. Luxury sales across Asia also held up, defying the sector-wide cyclical downturn as Chinese shoppers hold back and growth slows in other key markets.

While affluent Asians ramped up spending, the broader population tightened purse strings, particularly in China. Online retailer JD.com Inc. may post its slowest annual revenue growth since at least 2015, Bloomberg’s estimates showed. Advertising revenue growth at Chinese online video platform Bilibili Inc. should also decelerate this year due to macroeconomic headwinds, said Alex Poon, an analyst at …