Ferragamo Sees 2012 Growth as Quarterly Earnings Beat Estimates
Salvatore Ferragamo SpA (SFER), an Italian maker of $895 sandals, said it expects “significant” revenue growth in 2012 after reporting first-quarter earnings that beat analysts’ estimates.
Earnings before interest, taxes, depreciation and amortization climbed 40 percent to 38.2 million euros ($49.1 million), the Florence, Italy-based company said today in a statement after markets closed. The average of six analysts’ estimates compiled by Bloomberg was 37.7 million euros. Sales rose 23 percent to 259.6 million euros.
Demand for Ferragamo’s shoes and other items is increasing even as China’s economy slows and Europe’s debt crisis weighs on consumer spending. Tourists, mainly from China and Russia, are fuelling growth in Europe, while African and Latin American shoppers are buying more luxury goods, Chief Executive Officer Michele Norsa said in an interview last week with Bloomberg Television.
The quarterly sales “justify expectations for significant growth also throughout 2012, in the absence of severely unfavourable market conditions,” Ferragamo said in today’s statement.
Ferragamo shares fell 1 percent to 17.10 euros today in Milan trading, giving the company a market value of 2.88 billion euros.
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