Oct. 7 (Bloomberg) -- Valentino Fashion Group SpA’s sales in the U.S. and western Europe stabilized in September after months of decline, while demand in China and Hong Kong has surged, Chief Executive Officer Stefano Sassi said.

The Italian luxury brand, owned by London-based buyout firm Permira Advisers LLP, doesn’t expect demand in developed markets to return to pre-credit crunch levels “for a few months at least,” Sassi said after Valentino’s fashion show in Paris yesterday evening. “There is better attitude on the market than before, but in terms of fears it has not recovered yet.”

Revenue in China and Hong Kong jumped 40 percent in the past month, and the company expects that pace to continue, Sassi said backstage after the show, stepping aside as photographers rushed to snap pictures of Russian model Natalia Vodianova, who sported a small black Valentino dress. Sales in Japan were “not that bad,” Sassi also said.

Sassi said Permira plans to keep control of the company, whose main assets are German suit maker Hugo Boss AG and the couture house founded by Valentino Garavani, and has no plans to sell before the industry’s demand improves.

“This is not the time to sell the company, it’s time to work on the company and on the brand,” Sassi said. “Meanwhile, we’re doing a good job and adding value to the brand.”

As of May this year, Valentino had about 2.3 billion euros ($3.4 billion) of debt incurred from Permira’s buyout two years ago, the biggest ever private-equity deal in the luxury-goods industry.

Paolo Colonna, a partner in Permira, told the New York Times’ DealBook last week that the economic crisis would delay the buyout firm’s exit from its investment in Valentino, given low valuations for luxury-goods companies. He also said Valentino has had no trouble meeting interest payments.

To contact the reporter on this story: Ladka Bauerova in Paris at lbauerova@bloomberg.net.

Last Updated: October 7, 2009 09:15 EDT