Salvatore Ferragamo Shares Lifted by Positive Q1 Performance

MILAN — After leading the gains on the FTSE MIB index, with a peak rise of 10.4 percent, Salvatore Ferragamo shares closed up 9.9 percent to 21.25 euros on Wednesday. The jump followed the report of the Florence-based company’s first-quarter profits and sales a day earlier, which saw net earnings climb 23.5 percent and revenues gain 4.3 percent. Analysts, including Kepler, emphasized the “first signs of improvement” at Ferragamo, and raised its rating to hold from reduce. Equita analysts said the group’s top line “confirms that the strategic actions set in motion are correct and effectively executed.” “The appeal of the brand is back, with a like-for-like growth of 17.7 percent in the retail business in continental China,” according to Banca Akros, which believes the restructuring has “started bearing fruits.” Continental China “should continue to be the growth motor, with an increase in demand from the younger generations,” said analysts at Banca Akros, which raised the target price to 20.20 euros from 18.40 euros, seeing a “diminished risk of failure in the turnaround of the company. We expect a positive reaction of shares in Bourse, even if a positive quarter is not enough to change our rating on the shares, which remains neutral.” Kepler Cheuvreux recommended a hold

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