Investors dumped shares of Italian fashion house Prada on Monday following an ugly earnings report, which prompted a slew of brokerages to slice their price target for the stock.
Hong-Kong listed Prada's stock slumped over 6 percent to HK$37.35 ($4.80), its lowest level in more than three years after the company warned of difficult market conditions in Asia-Pacific.
"The 44 percent drop in earnings comes as a surprise. There are concerns that they may not be able to maintain their profit margins unless they figure out a way to reignite customer interest," Jackson Wong, associate director, United Simsen Securities Limited told CNBC.
"A lot of brands are competing with similar products at much cheaper prices," he said.