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Salvatore Ferragamo Profit Rises 85%

The Italian luxury brand was lifted by global growth and in particular a strong performance in the Asia Pacific region.

MILAN — Lifted by global growth and in particular a strong performance in the Asia-Pacific region, Salvatore Ferragamo Group closed the first nine months of the year with strong gains in profit and sales. In the period ended Sept. 30, the luxury brand showed an 85 percent jump in net profit, which reached 78.3 million euros, or $109.6 million, including a minority interest profit of 15.6 million euros, or $21.8 million. This compares with 42.3 million euros, or $55.4 million, in the same period last year.

Revenues climbed 27.6 percent to 701.3 million euros, or about $981 million.

Dollar amounts have been converted at average exchange for the periods to which they refer.

The Florence-based company, which went public in June, said top-quality products and the Made in Italy image contributed to the success of the brand.

Earnings before interest, taxes, depreciation and amortization surged 67.8 percent to 132.4 million euros, or $185.3 million. Operating profit jumped up 93 percent to 113.1 million euros, or $158.3 million.

The Asia-Pacific area solidified its role as the group’s main market, with revenues gaining 36 percent to 248.6 million euros, or $348 million, and accounting for 35.4 percent of total sales. Retail sales showed 50 percent growth in the region.

Europe rose 29.3 percent, accounting for 25.7 percent of sales. The U.S. gained 31.1 percent, confirming strong growth in the first half of the year, and accounting for 21.9 percent of total sales.

Despite the earthquake and nuclear tragedy in March, Japan showed a 1.7 percent increase in revenues, representing 13.1 percent of sales.

Revenues in the Central and South American area posted a 33.3 percent gain.

By category, footwear rose 34.2 percent and handbags and leather accessories 28.5 percent, representing about 74 percent of total turnover.

As of Sept. 30, net debt stood at 43.3 million euros, or $60.6 million, compared with 28.3 million euros, or $37 million, at the end of Sept. 2010. The figure takes into account Ferragamo’s acquisition of shares in Imaginex Group, controlled by Hong Kong businessman Peter Woo — a financial debt of 39.9 million euros, or $55.8 million, although it will not be effective before 2013. Stripped of the entry, debt would total 3.4 million euros, or $4.7 million.

The fashion company sold about 25 percent of its stock as it listed on the Bourse on June 29, in a deal worth 379 million euros, or $545.2 million.