Despite a drop in luxury spending by Chinese consumers, the chief executive of luxury goods maker Ferragamo told CNBC Friday that the world’s second largest economy was still the main source of growth for the sector.
“I still think China will be the booster of the luxury industry for several years,” Michele Norsa, chief executive of the Italian company, told CNBC Europe’s “Squawk Box” Friday.
“China is a very complex system, we are present in 40 cities, we have almost 100 stores and will be opening five stores this year — so we still believe very much in the market.”
On Wednesday, Ferragamo reported a 10 percent increase in sales in the first quarter of 2015 and a 17 percent rise in net profit to 32 million euros ($36 million), as the weaker single currency helped to boost sales.
The Asia-Pacific area was confirmed as the group’s top market for revenue, increasing by 11 percent (at current exchange rates) compared with the same quarter in 2014.
Ferragamo said in an earnings statement that “a significant contribution came from the retail channel in China, which recorded a revenue growth of 22 percent in the first three months of 2015.”
Read more at CNBC.