Luxury Market Downturn, Ferragamo Sales Growth Remains Stable

　　 Italy Salvatore Ferragamo's CEO Michele Norsa said that although the global political crisis in the third quarter has had a negative impact on the industry, it is expected that Ferragamo will improve its performance in the final stage of the year, and the annual sales and profit margins are expected to continue to grow.

According to reports, the second quarter of this year, the Asian market demand cooled, the Ukraine crisis made the number of tourists from Russia significantly reduced, the same industry manufacturers were hit, but Ferragamo sales maintained a steady growth rate, the core profit also exceeded expectations.

The Asia Pacific region is the largest market for Ferragamo. Norsa said sales growth in the Greater China region reached 15%, of which two or three outlets in mainland China are the backbone, while the first tier cities are flat because consumers are worried about pollution and so on. (editor's note: This is an interesting explanation, that is, people in the first tier cities go shopping because of pollution.)

In the mid 2011, Ferragamo listed in Milan usually stores shops in places such as airports, such as airports. Norsa said, in recent months Global The tense political situation has created an atmosphere of "unfriendliness", which has caused great pressure on consumers' emotions and deepened travellers' concerns about travel safety. However, Chinese and African tourists have made up for the decline in the number of Russian tourists, and European passenger traffic has increased by 7% in August.

Before the start of the 2015 spring and summer ladies' fashion show on Sunday, Norsa told reporters, "this will be a good year for Ferragamo sales and profits." The product exhibition includes long skirts and sandals.

Ferragamo Group sales increased 6% in the first half of this year to 659 million euros ($845 million). In August, the group CFO analyst told analysts that the market's expected annual sales of 13.3 to 1 billion 335 million euros were reasonable. Sales amounted to 1 billion 258 million euros in 2013. CFO also said gross margin would be unchanged from last year.

Recently, Ferragamo released the latest women's perfume, Norsa said that the group will aim at younger customers such as China's emerging markets with low spending power and fast-growing middle class groups, and continue to invest in cosmetic products. "We really hope that things will get better by the end of the year, not just for the whole industry, especially for our own brand, because we have been investing more: China Airports in South Korea and the United States and many other regions have opened new stores. "