Ferragamo CEO sticks to core profit guidance despite China slowdown
MILAN (Reuters) - The chief executive of Italian luxury goods maker Salvatore Ferragamo (SFER.MI: Quote) stuck on Sunday to last month's profit guidance despite slowing growth in Asia, its biggest market.
Speaking to analysts in late August, the chief financial officer of Ferragamo said he was confident the Florentine firm could meet a market forecast for the full year of earnings before interest, tax, depreciation and amortization (EBITDA) of around 320 million euros.
That compares with 2014 EBITDA of 293 million euros.
"We've been giving a very constant and consistent indication regarding this year," Ferragamo CEO Michele Norsa told reporters.
Speaking before Ferragamo presented its women's collection for next spring at the Milan fashion week, featuring stripy ankle-length dresses, Norsa declined to say how sales in August and September had gone.
A sharper-than-expected economic slowdown in China has dampened the outlook for luxury firms as consumers in the world's second largest economy are seen cutting back on spending.
Asia-Pacific is the biggest market for Ferragamo and the only geographic area where sales fell at constant exchange rates in the first half, 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 like Brazil and Russia, whose economies are suffering steep recessions.
(Reporting by Valentina Za; Editing by Mark Trevelyan)
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