Italian luxury leather goods maker Salvatore Ferragamo has a rosy outlook for the second half of this year. The company expects a boost from strong China demand and continued strong growth in global travel retail.
With a strong market presence in key airports around the globe, travelers, in particular Chinese travelers, are an important group for the company.
We wrote earlier this year that the company will be opportunistic with its China expansion. Ferragamo has more than 75 points of sale in China and the company believes the “coverage of territory there is quite well distributed.” Instead, the company will look for “opportunities in airports” given some new terminal openings. Ferragamo indicated plans to open four stores in China this year. First quarter China sales grew by 10 percent.
Creating revenue growth in Asia is a top priority for Ferragamo, as Asia accounts more than a third of its global sales. Though Ferragamo makes nearly 75 percent of its money from shoes, handbags, and leather goods, the company sees potential for growth in watches, eye wear, and other accessories.
image credit: simon q