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Salvatore Ferragamo CEO Michele Norsa sticks to core profit guidance despite China slowdown

Salvatore-Ferragamo

Italian luxury fashion house Salvatore Ferragamo is standing by last month’s profit guidance despite slowing growth in Asia, its chief executive Michele Norsa said.

“We’ve been giving a very constant and consistent indication regarding this year,” Norsa said on the sidelines of Milan Fashion Week. However, he declined to say how sales in August and September had gone.

In late August, Ferragamo said it was “confident” the Florentine firm could meet a market forecast for the full year ebitda of around €320m. That compares with 2014 ebitda of €293m.

Asia-Pacific is the biggest market for Ferragamo and the only geographic area where sales fell at constant exchange rates in H1, hurt by weakness in Hong Kong and Macau.

As items from the new collection start arriving in shops in November, Norsa said Ferragamo would try to adjust prices to offset the impact of tumbling currencies in countries such Brazil and Russia, whose economies are suffering steep recessions.

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