Ferragamo reports better than expected December sales
Salvatore Ferragamo‘s December sales outpaced its expectations due to growth in all of its markets, Chief Executive Michele Norsa said on Sunday. Norsa also said a stronger U.S. dollar and falling prices for raw materials should help performance in 2015 although volatility would likely continue to affect consumer trends.
“We closed 2014, which was an eventful year, with a lot of volatility, with a very strong end of the year,” said Norsa. In November, Ferragamo said it expected sales in the last quarter of 2014 to grow at least in line with the first nine months, allowing it to match its 2013 core profit margin in the full year.
Sales at Ferragamo rose 4.6 percent at current exchange rates in the first nine months of 2014 to 956.6 million euros ($1.1 billion). They were up 6 percent at constant currencies. Norsa dismissed concerns about consumer price trends in the euro zone, where inflation in December turned negative for the first time since 2009.
“We’ve been living in the past years with inflation below 2 percent. Now, between 0.5 and 1.2 percent the difference is not that relevant. I believe what is more important is consumer confidence,” he said