Italy’s Ferragamo CEO Sees No Let-up In Luxurious Sector Slowdown
MILAN (Reuters) – Salvatore Ferragamo (SFER.MI) will deal with boosting profits this 12 months to combat lower growth within the luxurious trade as a complete, its outgoing chief executive said on Sunday.
Slower economic growth in China, plunging oil cheap ferragamo shoes prices, unstable alternate charges and security threats that have curbed vacationer flows have all put the brakes on spending on upmarket handbags, shoes and other accessories.
Ferragamo posted a bigger-than-expected 5 % rise in first-quarter core profit in Might however revenue fell 2 % to 321 million euros ($362 million).
Speaking earlier than the model’s menswear present at Milan Males’s Trend Week, Chief Executive Michele Norsa stated the luxury sector must focus on managing dangers.
“Progress is not going to be as strong as in past years, when the Chinese language economy and new markets have been alternatives for the business,” said Norsa.
He stated Florence-based Ferragamo, whose founder designed ballet sneakers for Audrey Hepburn, is on monitor to continue increasing profitability and that it would not be affected if Britain voted to go away the European Union.
Ferragamo will proceed to deal with widening the profit margins on its products reasonably than pushing sales, “given the growth of volumes shall be onerous to forecast”, Norsa said.
Norsa, who has been at the helm of the luxury group for a decade and presided over its stock market debut in 2011, is due to depart by the top of the 12 months. He might be changed by Eraldo Poletto, former head of handbag maker Furla.