Ferragamo CEO Expects Sales Growth in 2010 as Demand Returns

Jan. 18 (Bloomberg) -- Salvatore Ferragamo SpA Chief Executive Officer Michele Norsa expects to post higher sales in 2010 after growth returned in all of the Italian luxury company’s markets in the final two months of 2009.

“For the first time, all the different regions were positive,” the CEO said in an interview Jan. 16. “It shows a change of a trend, which I hope will be the trend for 2010, of small but hopefully constant growth.” He expects Ferragamo to report high-single-digit growth this year.

Ferragamo, whose shoes have been worn by Marilyn Monroe and Condoleeza Rice, aims to open 20 to 30 stores this year, more than 50 percent of which will be in Asia, Norsa said. Ferragamo had 550 points of sale worldwide as of July, including standalone stores and concessions in department stores.

Excluding Japan, sales of luxury goods grew by around 10 percent in 2009 in the Asia Pacific region, according to consulting firm Bain & Co. Globally, the luxury-goods market shrank 8 percent to 153 billion euros ($220 billion), Bain estimated in October.

Ferragamo may have to tailor its products to suit Chinese consumers, Norsa said. He said that Chinese shoppers had “probably” replaced Russians, Japanese and Americans as the biggest spenders on luxury goods in Europe. The CEO of Ermenegildo Zegna SpA, the century-old Italian maker of men’s suits, said in an interview on Jan. 15 that Greater China will become its most important market in 2010.

Initial Public Offering

Norsa said Ferragamo’s plan for an initial public offering remains “a valid project” although not an immediate priority. “There is no specific timing but the project is still there,” Norsa said.

In 2008, Ferragamo reported revenue of 691 million euros, led by the Asia Pacific region, which registered a 23 percent increase in sales. Net income for the period was 39 million euros.

Norsa has run the privately held, Florence-based company since 2006. The shoemaker is still owned by the widow of founder Salvatore Ferragamo and other family members.


Source