Italy’s Ferragamo CEO sees no let-up in high-end sector downturn
MILAN (Reuters) – Salvatore Ferragamo (MI:-RRB- will concentrate on improving profits this year to combat lower development in the high-end industry as a whole, its outbound president said on Sunday. Slower financial development in China, plunging oil prices, unstable exchange rates and security hazards that have actually curbed tourist circulations have all put the brakes on spending on upmarket handbags, shoes and other devices. Ferragamo published a larger-than-expected 5 percent increase in first-quarter core revenue in Might however income fell 2 percent to 321 million euros ($362 million). Speaking before the brand’s menswear show at Milan Men’s Fashion Week, President Michele Norsa said the luxury sector would have to focus on handling dangers. “Growth will not be as strong as in previous years, when the Chinese economy and new markets have been chances for the market,” said Norsa. He stated Florence-based Ferragamo, whose founder developed ballet shoes for Audrey Hepburn, is on track to continue enhancing profitability which it would not be impacted if Britain voted to leave the European Union. Ferragamo will continue to focus on broadening the profit margins on its items rather than pressing sales, “given the development of volumes will be difficult to anticipate”, Norsa said. Norsa, who has actually been at the helm of the high-end group for a years and presided over its stock market debut in 2011, is because of leave by the end of the year. He will be replaced by Eraldo Poletto, former head of purse maker Furla. Ferragamo’s shares have actually more than doubled in value in the 5 years given that the listing, however have slid 9 percent so far in 2012 as the high-end industry faces weakened need. Disclaimer: Blend Media would like to remind you that the information contained in this site is not always real-time nor precise. All CFDs (stocks, indexes, futures) and Forex costs are not provided by exchanges but rather by market makers, and so prices might not be precise and may differ from the actual market price, implying rates are indicative and not appropriate for trading functions. For that reason Combination Media does n`t bear any responsibility for any trading losses you might incur as a result of utilizing this information. Fusion Media or anybody involved with Fusion Media will decline any liability for loss or damage as an outcome of reliance on the information including data, quotes, charts and buy/sell signals consisted of within this website. Please be fully informed concerning the risks and expenses associated with trading the monetary markets, it is one of the riskiest investment kinds possible.