Big shoes to fill

20 June 2016 By Carol Ryan

The Italian shoemaker’s chief says the label will focus on widening profit margins as sales become unpredictable. Cost cutting helps, but many problems in the luxury sector are self-inflicted. Rapid expansion and price hikes during the good times leave fewer options now.

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Salvatore Ferragamo will focus on boosting profits this year to combat lower growth in the luxury industry as a whole, its outgoing chief executive Michele Norsa said on June 19.

Slower economic growth in China, plunging oil prices, volatile exchange rates and security threats that have curbed tourist flows have all put the brakes on spending on upmarket handbags, shoes and other accessories.

“Growth will not be as strong as in past years, when the Chinese economy and new markets have been opportunities for the industry,” said Norsa.

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