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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 yr to combat decrease growth within the luxurious industry as a whole, its outgoing chief government ferragamo fresh as a said on Sunday.
Slower financial development in China, plunging oil costs, risky exchange charges and safety threats which have curbed vacationer flows have all put the brakes on spending on upmarket handbags, shoes and other accessories.
Ferragamo posted a larger-than-expected 5 p.c rise in first-quarter core profit in Could but revenue fell 2 percent to 321 million euros ($362 million).
Speaking earlier than the brand’s menswear show at Milan Men’s Fashion Week, Chief Govt Michele Norsa said the luxury sector would have to concentrate on managing risks.
“Growth won’t be as strong as in ferragamo fresh as a past years, when the Chinese economic system and new markets have been opportunities for the industry,” stated Norsa.
He said Florence-primarily based Ferragamo, whose founder designed ballet footwear for Audrey Hepburn, is on observe to continue growing profitability and that it wouldn’t be affected if Britain voted to go away the European Union.
Ferragamo will continue to focus on widening the revenue margins on its merchandise slightly than pushing sales, “given the expansion of volumes will likely be laborious to forecast”, Norsa said.
Norsa, who has been on the helm of the luxury group for a decade and presided over its inventory market debut in 2011, is due to leave by the end of the 12 months. He might be replaced by Eraldo Poletto, former head of handbag maker Furla.