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By Giulia Segreti
MILAN Feb 3 Italian luxury fashion group
Salvatore Ferragamo plans to grow revenue at twice the
market rate from 2017-2020, backed by a drive to improve
performance at existing stores and updates to its product
ranges, it said on Friday.
Eraldo Poletto, who took over from long-serving CEO Michele
Norsa in August, said he aimed to "deliver a refreshed, more
contemporary brand aesthetic" with the company's three
"The brand is there, we need to wake it up a bit, and make
it louder," he said in his first strategy update as CEO.
Poletto did not refer to a specific market growth rate,
saying that was "a moving target". Consultants Bain & Company
expect the luxury industry to grow by 1-2 percent in 2017, and a
further 3-4 percent in the years up to 2020.
High-end brands have been struggling with a slowdown in
their biggest market, China, as well as a drop in tourist
spending in Europe following a series of deadly attacks.
Florence-based Ferragamo almost doubled revenue in the six
years to 2015 and its net profit rose threefold. But last year
sales rose just 1 percent and were down 2 percent at constant
Ferragamo would not raise prices, but aimed to make its
stores more profitable, raising sales per square metre at its
683 boutiques worldwide, Poletto said.
One analyst, who declined to be named, said the revenue
target was ambitious and above the market consensus forecast,
while the drive to improve store efficiency was "positive".
At 1625 GMT, Ferragamo shares were up 1.1 percent at 26.53
Finance chief Ernesto Greco, set to leave the company in
mid-March, said that unlike the past, opening new stores would
not be a strong driver of growth, adding Ferragamo did not plan
a large number of store closures either.
($1 = 0.9309 euros)
(Reporting by Giulia Segreti and Claudia Cristoferi; Editing by