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Ferragamo Cautious After 2018 Core Revenue Beat
MILAN (Reuters) – Italian luxurious goods maker Salvatore Ferragamo reported a larger-than-expected 11 percent rise in core profit for 2015 but expressed warning on the outlook subtil for women by salvatore ferragamo for 2016 after a tender begin to the yr.
Chief Executive Michele Norsa advised analysts on Thursday like-for-like gross sales in the first two months broadly matched last year’s three percent drop.
“The start of the 12 months has not been particularly good,” he said, pointing to a double-digit drop in gross sales in Hong Kong.
“I‘m more assured on mainland China where we’re seeing a greater performance.”
A brusque economic slowdown in China has dampened the outlook for luxurious brands and Asia Pacific is the largest market for the Florentine shoemaker.
Ferragamo’s 2015 earnings before interest, tax, depreciation and amortisation totalled 324 million euros (253.4 million pounds) final year, above a Thomson Reuters SmartEstimate of 314 million euros. The EBITDA margin rose to 22.7 percent of revenue from 22 p.c.
Requested whether or not the group was snug with current market expectations for 2016, Chief Monetary Officer Ernesto Greco said that “consensus is probably something we must explore month after month.”
Ferragamo reported in January a 7 p.c rise in 2015 revenues to 1.Forty three billion euros as currencies helped offset weakness in Asia and the United States. Revenues rose 1 % at fixed alternate rates.
Norsa mentioned developments in the United States had been little changed. In a extra optimistic notice, he echoed comments from rival Tod’s (TOD.MI) about Italy doing higher than anticipated. France, quite the opposite, continued to endure after final year’s Paris attacks.
The CEO mentioned Ferragamo would strive to enhance sales of sneakers after they fell 1 % at fixed currencies final 12 months.
“Our focus will probably be on footwear which is our core business,” he stated. “We have something in mind: we could increase consciousness, visibility and also probably worth positioning.”
Norsa stated the group anticipated to save lots of money this year by renegotiating store rents. Store openings would likely be fewer than final year when it added 15 new straight-operated shops.