UPDATE:Italy Luxury Cos Hope China Will Offset US,Japan Losses
MILAN (MF-Dow Jones)--As a difficult Christmas season approaches and challenges await the luxury sector in 2009, luxury companies in Milan Tuesday said they are still hoping China will help pull sales as the U.S. and Japan lag.
"It is estimated that China will grow 8%, lower than a previous 11% originally estimated, but it is far from recession," Versace Chief Executive Giancarlo Di Risio said at the Milano Fashion Global Summit 2008.
Versace, which recently said it expects limited effects from the global financial crisis on its sales, expects China to surpass Japan as its biggest single market in Asia.
Di Risio said Versace had no stores in the area in 2005 and now has 21. "We will still open more," he added.
"We don't see any signs of a slowdown (in China) in terms of our plans currently under way," said Furla Chief Executive Paolo Fontanelli.
Salvatore Ferragamo SpA Chief Executive Michele Norsa said the company will open eight stores in 2009, compared with nine in 2008.
Looking to 2009, analysts expect a downturn, as the global crisis and consumer spending slowdown weigh on the sector.
Merrill Lynch analyst Paola Durante said it expects listed luxury company sales worldwide to grow by 8% in 2008, below a 12% growth estimate given earlier this year.
"Growth will be sustained by emerging countries, but in the near to medium-term, these countries won't be able to offset eventual non-growth in Europe and the U.S.," Durante said.
"Today, China sales weigh as much as that of Italy," said Franco Cologni, director of Swiss-based Compagnie Financiere Richemont (CFR.VX). "But emerging countries won't represent an alternative for many years," he added.
-By Cecilia Morello of MF-Dow Jones and Sofia Celeste, Dow Jones Newswires; +39 39 06 69766923; sofia.celeste@dowjones.com
(Paola Longo in Milan contributed to this article.)
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(END) Dow Jones Newswires
November 25, 2008 12:29 ET (17:29 GMT)
Publié le 25 novembre 2008 Copyright © 2008 Dowjones
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