By  on November 12, 2019

MILAN — Hong Kong was a sore spot for the Salvatore Ferragamo Group in the nine months, hurt by a 45 percent drop in retail sales in the region in the third quarter, but the performance in the period was lifted by other areas including Europe.

“We were not anticipating what is happening in the market [would have] this magnitude,” said chief executive officer Micaela Le Divelec Lemmi during a call with analysts on Tuesday. Hong Kong suffered “a big hit” at retail, due to the tensions there, but Latin America is also suffering, hurt by political unrest, and the wholesale channel went through a downward trend, she continued. “The performance is not consistent around the world and the overall results are mixed in different channels and markets. We are fine-tuning the strategy but it will not change in essence.” This will also include “not overinvesting” or new initiatives in Hong Kong, as the group considers how to increase traffic. “We see a decrease of Mainland Chinese in Hong Kong but we start to see them in other regions. They are back in European capitals, there are signals from Korea, but we cannot anticipate a destination in the mid-term.” Chief financial officer Alessandro Corsi echoed that sentiment saying that he was “not able to predict where we can see a full compensation of the Chinese cluster we lost in Hong Kong.”

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