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Italy’s Ferragamo CEO Sees No Let-up In Luxury Sector Slowdown
MILAN (Reuters) – Salvatore Ferragamo (SFER.MI) will focus on boosting profits this year to fight lower development in the luxury business as a whole, its outgoing chief executive said on Sunday.
Slower financial development in China, plunging oil costs, risky change rates and security threats that have curbed tourist flows have all put the brakes on spending on upmarket handbags, shoes and different equipment.
Ferragamo posted a larger-than-expected 5 p.c rise in first-quarter core profit in May however income fell 2 % to 321 million euros ($362 million).
Speaking earlier than the brand’s menswear present at Milan Males’s Vogue Week, Chief Govt Michele Norsa mentioned the luxury sector must focus on managing risks.
“Development is not going to be as robust as in past years, when the Chinese language economy and new markets have been opportunities for the trade,” stated Norsa.
He stated Florence-based Ferragamo, whose founder designed ballet sneakers for Audrey Hepburn, is on track to continue rising profitability and that cristina ortiz ferragamo it wouldn’t be affected if Britain voted to leave the European Union.
Ferragamo will proceed to give attention to widening the profit margins on its merchandise moderately than pushing sales, “given the growth of volumes shall be exhausting to forecast”, Norsa said.
Norsa, who has been at the helm of the luxurious group for a decade and presided over its stock market debut in 2011, is due to go away by the end of the year. He might be replaced by Eraldo Poletto, former head of handbag maker Furla.