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Ferragamo Cautious After 2018 Core Profit Beat

MILAN (Reuters) – Italian luxurious goods maker Salvatore Ferragamo reported a larger-than-expected eleven p.c rise in core profit for 2015 however expressed warning on the outlook for 2016 after a gentle start to the year.

Chief Executive Michele Norsa informed analysts on Thursday like-for-like sales in the primary two months broadly matched last yr’s three percent drop.

“The start of the 12 months has not been significantly good,” he said, pointing to a double-digit drop in gross sales in Hong Kong.

“I’m extra confident salvatore ferragamo purse price on mainland China where we’re seeing a better efficiency.”
Ferragamo‘s 2015 earnings earlier than curiosity, tax, depreciation and amortisation totalled 324 million euros (253.Four million pounds) final 12 months, above a Thomson Reuters SmartEstimate of 314 million euros. The EBITDA margin rose to 22.7 % of income from 22 percent.

Asked whether the group was comfortable with current market expectations for 2016, Chief Monetary Officer Ernesto Greco said that “consensus might be something we should discover month after month.”

Norsa said traits within the United States have been little modified. In a more constructive word, he echoed feedback from rival Tod’s (TOD.MI) about Italy doing higher than anticipated. France, on the contrary, continued to undergo after final year’s Paris assaults.

Ferragamo Vara Flats in Navy Blue“Our focus will be on sneakers which is our core enterprise,” he stated. “We now have something in mind: we could increase consciousness, visibility and also probably worth positioning.”

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