Aug 30, 2013
Salvatore Ferragamo core profit up 26 percent
Aug 30, 2013
MILAN, Italy - Italian luxury shoemaker Salvatore Ferragamo said core earnings rose 26 percent in the first half as Asian shoppers and well-heeled tourists in Europe snapped up its products.
Asia Pacific continued to be the group's top market, accounting for 38 percent of revenue, which rose 13 percent.
Sales in Europe, which accounted for 26.7 percent of the total, rose 13.9 percent despite the weak European economy, driven by spending from Asian, Russian and Middle Eastern tourists.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, rose to 131 million euros ($173 million) in the first half from 105 million a year ago, the company said on Thursday.
It added that increased operating efficiency also boosted EBITDA, without providing further details.
Revenue rose 11 percent to 625 million euros, while net profit jumped 81 percent to 81 million euros.
The maker of shoes worn by celebrities from Lady Gaga to Angelina Jolie said it expected growth in revenue and net profit to continue throughout 2013.
Shares closed up 5.5 percent at 25.39 euros before the release of the results. The company debuted on the Milan Stock Exchange in mid-2011 at 9 euros. ($1 = 0.7562 euros)
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