Salvatore Ferragamo Asia Pacific Sales Fell 3.2%

Italy

Group Salvatore Ferragamo 2015 net profit and sales growth recorded in the fiscal year, but sales in the Asia Pacific region dropped by 3.2%, due to the weak performance in Hongkong and Macao and the complex environment in the mainland of China.

For the future retail development strategy of Salvatore Ferragamo, the group will focus on tourism retail business and plan to open 5-6 sales outlets at the airport.

As far as Asia is concerned, Hongkong's performance is still negative due to the decrease of tourists from mainland China, and Macao is also suffering from difficulties.

But at the same time, Japan and South Korea attract more mainland Chinese shoppers.

For the whole year, the group

Growth of 6.7% to 174 million 500 thousand euros is mainly affected by

Strong sales and stable performance in Europe are driving even higher operating costs than last year.

The total revenue increased by 7.4% to 1 billion 430 million euros.

At fixed exchange rates, sales increased by 1.4%.

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By the end of December 31st, the company's fourth quarter pre tax profit (EBITDA) rose by 2% to 171 million euros, less than the company's 3 to 5% target.

According to the disclosure, based on the constant exchange rate, sales increased by 5%, thanks to the increase in tourist arrivals, sales in Europe increased by 10%.

US regional sales fell 1%, and the US market has been weakening since the third quarter.

Sales in China were the most dismal and sales fell more than double digits.

Hugo Boss decided to slow down the expansion of its retail network, and the group decided to close 20 stores in China.

The company expects sales growth to slow down in 2016 and operating profit to decline.

After the release of the earnings report, the group announced that it had left the group CEO Claus-Dietrich Lahrs for 8 years.

Due to weak sales in China and the United States, the group issued a profit warning, the stock price plunged 20.2% in February 23rd, and the group's market value evaporated 26.2%.