Italian luxury goods company Prada on Tuesday reported a sharp fall in profits on the back of weak Asian demand and said it had started to cut costs. Prada said net profit for the nine months to October dropped by 26.4 percent to 235.1 million euros ($256 million). Sales were up 1.2 percent at 2.6 billion euros, while operating profit dropped nearly 13 percent. Weakness in Prada's Asia-Pacific markets, which already cut into earnings in previous quarters, continued to weigh on profits. "This is due to reductions in both local consumption and tourist flows within the region, with Hong Kong and Macau particularly affected," Prada said in a statement. Financial market volatility and socio-political risks took their toll on consumer spending and tourism, it said. Patrizio Bertelli, Prada's chief executive officer, said the company was looking at ways to rekindle demand from its "increasingly sophisticated and demanding customer base". But he added that "at the same time, we have implemented further cost-containment measures following a review of all business processes".