Salvatore Ferragamo CEO expects improved results second half 2014
Michele Norsa, CEO of Salvatore Ferragamo has recently confirmed his company expects results to improve in the second half of 2014 from the first six months on the back of strong demand in China and in global travel retail. Ferragamo plans to open between 10 and 20 new stores this year, four of them in new large Chinese cities.
“For China the medium-term outlook is extremely positive and growth in the travel retail market is still very rapid.” Norsa added. The group increased its annual sales at stores it operates directly in China by 10 percent in the first quarter, though geopolitical tensions between China, Japan and Vietnam had an adverse impact on its wider business in Asia. He confirmed the group’s full-year target of single-digit revenue growth despite persistent euro strength.
Geopolitical tensions between Russia and Ukraine are still affecting business in Europe as wealthy clients from those two nations have cut down on foreign travel, he said.”The crisis is impacting some specific stores, like Capri and Montecarlo,” said Norsa.
“But the Russians are still very much in love with the brand. In Moscow we just re-opened a much larger store. They will come back, now they are probably traveling less.”