Prada SpA reported full-year sales that trailed estimates as fewer Chinese shoppers splurged on $2,950 leather handbags and other luxury products.

Revenue fell 1 percent to 3.55 billion euros ($4 billion) in the 12 months through January, the Milan-based owner of brands including Miu Miu and Car Shoe said Sunday. Analysts predicted 3.57 billion euros, according to the median analyst estimate compiled by Bloomberg.

While companies from LVMH Moet Hennessy Louis Vuitton SA to Hermes International SCA have also been weighed down by slowing demand, Prada didn’t react fast enough to changes in consumer behavior, particularly around price, according to RBC Capital Markets analysts. Profit margins will remain under pressure in the second half, Prada said in December as it announced plans to open fewer stores in fiscal 2016 and to introduce more bags priced between 1,000 euros and 1,200 euros.

“We believe in the long-term appeal of the Prada brand, but we think that it is still too early to buy the stock,” RBC analyst Rogerio Fujimori said before the numbers were published.

Prada shares were unchanged at HK$42.60 at the close of Hong Kong trading on Feb. 18, the last day that the local stock market was open before the Lunar New Year holidays.

The slowdown in sales has gained pace since nine-month results, when net revenues dropped 0.9 percent.

–With assistance from Rachel Morison in London.

This article was written by Andrew Roberts from Bloomberg and was legally licensed through the NewsCred publisher network.

Photo Credit: A Prada outlet store in the Tuscany region of Italy. Stefano Costantini / Flickr