Ferragamo'S First Half Growth Is In Line With Market Expectations.

Salvatore Ferragamo SpA, the luxury brand, announced the performance of the last half of the year.

In the first half of fiscal year ending June 30th, thanks to the appreciation of the dollar, the growth of the North American market and the steady growth of the European market helped to offset the slump in Macao and Hongkong.

The total income of 722 million 400 thousand euros is in line with market expectations, an increase of 9.6% over the same period last year of 659 million euros, and the growth rate narrowed to 2% at a constant exchange rate, mainly due to retail sales.

And wholesale sales were only flat in the same period last year.

The geopolitical crisis and the Greek debt crisis have a serious impact on wholesale business.

In the first half of this year, the group's core earnings EBITDA increased by 15.1% to 164 million 600 thousand euros, slightly better than the market forecast of 161 million euros, and EBITDA profit margins increased from 21.7% in the same period last year to 22.8%.

Net profit was 88 million 153 thousand euros, up 12.9% over the same period last year.

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The depreciation of the renminbi means that the price of luxury goods will not only rise in China, but even in foreign countries, such as New York and Milan, the purchase of luxury goods by Chinese consumers will no longer be cost-effective.

Economic slowdown and domestic market fluctuations will also affect the tourism market and consumer demand.

Under the bright billboards of MontBlanc, Cartire, Gucci and Burberry, the most prosperous street in Hongkong winds through the Times Square Center.

But in the high-end shopping malls soaring into the clouds, there are no noisy crowds in the empty boutiques.

The salesperson in the Chanel shop greeted the customer outside the shop: "sorry, you have to wait in line."

As she said, she seemed to wave to an imaginary customer.

Usually the weekend shoppers are bustling, but there are only a few people in the shops today.

The peak period of luxury consumption in China has passed, and the stock market plummeted and the RMB depreciated. Coupled with the already slowing economic growth rate and the government's strict crackdown on gifts, a series of factors have affected the purchasing power of Chinese consumers, and the luxury consumption in China has accounted for 1/3 of the world's total.

The slump of Chinese consumers has a direct impact on investors and global luxury brands.

In recent years, the rich Chinese young people seem to have an incomparable enthusiasm for Chanel bags and Hermes scarves. The hot luxury consumer market is in sharp contrast to the cold times square and luxury stores in Hongkong.

According to Bain consulting, in the past ten years, the annual growth rate of luxury consumption in China has exceeded 10%, but last year it dropped by 1% to 18 billion dollars.

In addition to market volatility, the Chinese government has allowed the depreciation of the renminbi and the possibility of further depreciation, which has created a cold sweat in China's luxury consumer market.

"This may be a serious blow," said David Friedman, President of Wealth-X, a luxury intelligence company based in New York.

"This is the last straw of luxury camel, because Chinese consumers have been the main driving force for the development of luxury goods."

"Are Chinese consumers still so important for luxury brands? Absolutely.

But after a few years, will Chinese consumers be the mainstay of these luxury brands' consumption? "

This series of fluctuations shows that the luxury consumer market has an abnormal dependence on Chinese consumers.

According to the Bank Securities Department of Paris, sales of Burberry 1/4 and sales of Prada 1/5 are all from powerful Chinese consumers.

The brand of Swatch group includes Omega, Harry Winston and Balmain, and its sales volume is 35% yuan from mainland China, Hongkong and Macao.

If the amount of luxury goods purchased by Chinese tourists overseas is included, the share may be even higher. The price of luxury goods abroad is usually lower than that in Beijing and Shanghai, because the import price of luxury goods in Shanghai and Beijing is included.

According to Bain consulting, Chinese consumers buy luxury goods abroad for half of their total purchases.

"Prices are getting higher and higher, people travel less and less, and the market volatility allows consumers to think twice about luxury consumption," said Simon Sig, a securities analyst with advanced retail and luxury goods industry in Nomura, Japan. "You can only see empty shops from the Fifth Avenue."

Luca Szoka, the global luxury department of Bank of Paris, France, believes that even so, the impact of the stock market crash and the depreciation of the renminbi on the luxury consumer market can not be reached.

According to the market simulation of Scola, the depreciation of RMB 5% will reduce global luxury consumption by 1%. Luxury goods include a range of brands such as Burberry, Hermes, Prada, LV group and Swatch group.

According to the calculation of the card, even if the RMB falls by 20%, the sale of luxury goods will not drop more than 5%.

"Usually the luxury market will react more strongly to some of the larger anomalies than it is after the first move," said the card. "The situation now looks like a financial crisis, but it is not the storm of the real economy.

If this situation continues, then one day it will also have an impact on the real economy. "