Ferragamo Confirms 2013 Outlook as Quarterly Profit JumpsAndrew Roberts
Salvatore Ferragamo SpA, an Italian maker of $1,390 sandals, reported first-quarter profit that exceeded estimates and confirmed its projection for earnings growth this year amid surging sales in the Americas.
Earnings before interest, taxes, depreciation and amortization rose 26 percent to 48 million euros ($62.3 million), the Florence, Italy-based company said today in a statement after the stock market closed. Analysts predicted 42.9 million euros, according to the average of nine estimates compiled by Bloomberg.
Business patterns this year justify expectations for increases in revenue and profit through 2013 even as sales growth slows, Chief Executive Officer Michele Norsa said on a conference call today. Luxury competitors including LVMH Moet Hennessy Louis Vuitton SA and PPR SA-owned Gucci last month reported the weakest quarterly sales growth in more than three years as demand softened in Europe and Asia.
The “U.S. and Latin America keep overperforming” while travelers are maintaining demand in Europe, Ferragamo said in a presentation today. In Asia, demand is “mixed.” China is growing, with Hong Kong, Macau and Australia “overperforming” while Korea, Singapore and Taiwan “are still suffering,” the company said.
Sales advanced 17 percent in North America and 15 percent in Latin America, excluding currency swings, Ferragamo said. Revenue gained 10 percent in Europe, 4.2 percent in Japan and 6.2 percent for the Asia Pacific region, it said.
Ferragamo shares retreated 0.9 percent to 23.11 euros in Milan, giving the shoemaker a market value of 3.9 billion euros.
Sales in the quarter advanced 8.6 percent to 281.9 million euros, or by 9.6 percent excluding currency shifts. Analysts estimated sales of 282.4 million euros, according to data compiled by Bloomberg.