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Salvatore Ferragamo appoints former Furla CEO to lead group

Italian luxury goods group Salvatore Ferragamo said it appointed as new chief executive former Furla head Eraldo Poletto, credited for a doubling of sales at the accessibly-priced handbag maker in the last five years.

Ferragamo on Thursday posted a larger-than-expected 5 percent rise in first quarter core profit but weak markets in Europe and Asia pushed revenues down 2 percent to 321 million euros, both at constant and current exchange rates, just below a Thomson Reuters forecast of 326 million euros.

Chairman Ferruccio Ferragamo told analysts that Poletto would take over from Michele Norsa, who has led the Florence-based group since 2006 and who is leaving for personal reasons, on August 2..

Since listing in 2011 Ferragamo shares have doubled in value. However, the stock is down 9 percent this year as the luxury industry grapples with slower economic growth in China, plunging oil prices and security threats that have hurt tourism.

Revenues fell 3 percent in Asia Pacific, the biggest market for Ferragamo, hit by ongoing weakness in Hong Kong and Macao although Japanese sales grew pushed by Chinese tourist spending.

(Source: FashionMag)