Italy’s Ferragamo CEO Sees No Let-up In Luxury Sector Slowdown
MILAN (Reuters) – Salvatore Ferragamo (SFER.MI) will concentrate on boosting income this yr to combat lower development in salvatore ferragamo style the luxurious industry as a complete, its outgoing chief executive mentioned on Sunday.
Slower economic progress in China, plunging oil costs, volatile trade rates and safety threats that have curbed tourist flows have all put the brakes on spending on upmarket handbags, footwear and other equipment.
Ferragamo posted a bigger-than-anticipated 5 % rise in first-quarter core revenue in Could but revenue fell 2 % to 321 million euros ($362 million).
Talking earlier than the model’s menswear show at Milan Males’s Fashion Week, Chief Government Michele Norsa stated the luxurious sector would have to focus on managing dangers.
“Development is not going to be as sturdy as in previous years, when the Chinese language economy and new markets have been alternatives for the industry,” mentioned Norsa.
He said Florence-based Ferragamo, whose founder designed ballet shoes for Audrey Hepburn, is on track to proceed rising profitability and that it wouldn’t be affected if Britain voted to depart the European Union.
Ferragamo will continue to deal with widening the profit margins on its products fairly than pushing gross sales, “given the growth of volumes shall be arduous to forecast”, Norsa mentioned.
Norsa, who has been on the helm of the luxury group for a decade and presided over its stock market debut in 2011, is due to depart by the end of the year. He shall be replaced by Eraldo Poletto, former head of handbag maker Furla.