Stocks in the luxury sector are facing yet again more pressure after Italian footwear and leather goods group Salvatore Ferragamo reported a sharp slump in profits.
Operating profits at the Florence-based company dropped by 41% in the first half of the year, with sales in all of its main regions slowing.
Underlying earnings at the firm reached €28 million during the first six months of the financial year, bettering analysts' expectations for €20 million despite revenues dropping by 6%.
"Our aggregate financial results in the second quarter were significantly impacted by the challenging consumer environment, especially in Asia Pacific, which offset the positive trends in the rest of the world", chief executive Marco Gobbetti said following the results.
In reaction to the profit slump, shares in Burberry have slipped 1.6%, while LVMH and Hermes dropped by more than 1%.