Ferragamo pinning hopes on Korea

Australia and Korea have been singled out by Italian luxury clothing brand Salvatore Ferragamo as relative sweet spots for sales moving forward.

However, Japanese sales are expected to slow further because of weaker consumer confidence.

The group has unveiled a positive set of first-quarter results in the face of a challenging period for nearly all luxury brands, reports The Street. It had a 2.5 per cent increase in gross profits despite lower sales, attributed to a “notable reduction” in costs.

Ferragamo says Chinese sales were sluggish, hit by ongoing economic uncertainty, and European revenues also fell because of lower levels of tourism.

The Street says Ferragamo’s results show it is possible to boost the bottom line even in a tough market, citing the weaker sales of labels such as Burberry and Hugo Boss.


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