Salvatore Ferragamo will focus on boosting profits this year to combat lower growth in the luxury industry as a whole, its outgoing chief executive said on Sunday. 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. Ferragamo posted a larger-than-expected 5 percent rise in first-quarter core profit in May but revenue fell 2 percent to 321 million euros ($362 million). Speaking before the brand’s menswear show at Milan Men’s Fashion Week, Chief Executive Michele Norsa said the luxury sector would have to focus on managing risks. “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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