Ferragamo CEO Says China Still Growing at ‘Significant’ Pace
Salvatore Ferragamo SpA (SFER) Chief Executive Officer Michele Norsa said revenue in China continues to increase at a “significant” pace, even as growth slows in some coastal areas as the economy cools.
“There isn’t a big difference” between Ferragamo’s second-quarter sales growth and the first quarter, Norsa said today before the Florence, Italy-based shoemaker’s mens’ runway show in Milan.
So-called second- and third-tier Chinese cities are “performing even more positively,” while coastal cities such as Shenzhen and Guangzhou “suffer a little bit more because of the economic slowdown,” the CEO said.
The U.S. is performing better than expected, particularly in tourist destinations such as Hawaii, Norsa said. Ferragamo’s sales growth on the West Coast of the country is higher than that on the East Coast, he said.
Ferragamo isn’t preparing for Greece to exit the euro, Norsa said. The Greek market, where the luxury goods maker operates via a partner, still has “a reasonable future,” particularly as it’s one of the top five countries for e- commerce sales in Europe, the CEO said.
“It means people are more willing to buy online than go out shopping,” Norsa said.
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