Ferragamo CEO Sees Improved Development Outlook In H2, Upbeat On China

MILAN (Reuters) – Italian luxury leather goods maker Salvatore Ferragamo expects group results to enhance within the second half of 2014 from the primary six months on the again of strong demand in China and in global travel retail, its chief executive mentioned on Sunday.

Salvatore Ferragamo Clothing

Ferragamo, whose footwear had been loved by Hollywood film stars akin to Marilyn Monroe and Audrey Hepburn, plans to add between 10 and 20 outlets to its current community this 12 months, four of them in new giant Chinese language cities, Michele Norsa mentioned.

Ferragamo, which derives some three quarters of its revenues from shoes and bags, has a strong presence at key airports all over the world, making travelers an important customer group.

“We expect an enchancment within the second part of the year, Norsa said on the group men style present in Milan, which featured casual smart attires dominated by shorts and shadows of brown.

“For China the medium-term outlook is extremely positive and growth within the travel retail market remains to be very fast. /p>

The group elevated its annual sales at shops it operates immediately in China by 10 percent in the primary quarter, though geopolitical tensions between China, Japan and Vietnam had an opposed impact on its wider business in Asia, stated Norsa.

He confirmed the group’s full-year target of single-digit income growth despite persistent euro energy.

Norsa, who worked for rival Valentino earlier than becoming a member of Ferragamo in 2006, declined to provide more specific forecasts on how the business would progress within the second half of 2014.

Ferragamo posted an overall enhance of three percent in retail like-for-like gross sales in the primary quarter. The Tuscan group, still managed by the founding family, went public in 2011 and is the most important vogue firm listed on the Milan bourse.

Chairman Ferruccio Ferragamo instructed reporters on Sunday the group was not contemplating any merger or acquisition, regardless of analysts expectations for continued consolidation within the sector and changes within the ownership structure of Italian vogue corporations.

“We don’t plan any extraordinary operations, he mentioned.

EURO Energy

Norsa mentioned Ferragamo, which manufactures its sneakers and bags fully in Italy, could marginally raise costs on selective items in Europe to offset the power of the euro against the U.S. greenback and the yen and towards unstable emerging markets currencies such as the Turkish lira and the Russian rouble.

The euro has risen from round 1.31 in opposition to the U.S. greenback a year ago to almost 1.38.

“The international trade level has an enormous impression and is affecting development, mentioned Norsa.

“If the overseas alternate fee doesn’t come again to more affordable steadiness, we could consider some small increases to scale back the worth gap in some places, Norsa stated.

Geopolitical tensions between Russia and Ukraine are still affecting enterprise in Europe as rich shoppers from these two nations have reduce down on international journey, he stated.

The crisis) is impacting some specific shops, like Capri and Montecarlo, stated Norsa.

“But the Russians are still very a lot in love with the brand. In Moscow we simply re-opened a much larger store.

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