Norsa heads up Ferragamo, IPO in sight

Florence-based fashion house Ferragamo has appointed Michele Norsa as chief executive and general manager of the group controlled by Salvatore Ferragamo Italia. Norsa joins the family company from Valentino SpA, where he was chief executive as well as being general manager of Valentino Fashion Group’s licensed brands, M Missoni and Marlboro Classics. “The (family’s) fourth generation is up next, and we did not want for these young shareholders to be restrained, without the chance to sell or buy (shares). We want a company with a broader and more fluid breadth,� managing director Ferruccio Ferragamo told WWD. He will now become chairman of SFI.

The company is also planning an IPO, which Wanda Ferragamo said would happen in the “not too distant future� and Norsa will be instrumental in the process. His experience with Marzotto’s stock market spin-off of its fashion businesses into the Valentino Fashion Group will be crucial. “Norsa is an expert, well-prepared and knowledgeable, someone I’ve know for years, and I really admire him� said Ferruccio, who added that there was no rush to the stock market. Meanwhile, Wanda – Salvatore Ferragamo’s widow – will continue on as chairman of Ferragamo Finanziaria, the family-owned company that controls SFI, and will become honorary chairman of SFI.

Norsa spoke in superlatives about the company he is joining, saying it was “a beautiful company, a beautiful brand and a beautiful family.� He has plenty of experience working for families, like the Benettons and Marzottos. “The one thing a manager can choose is the quality of the people he works with,� he said, adding that Ferragamo has “extraordinary brand awareness� and “tremendous potential� as well as “a history, a heritage and a message that will contribute to the success of the brand in emerging markets.�

In January, Ferragamo reported consolidated net profits of €39.2 million on a sales increase of 12 percent to €575 million. The company predicted double-digit growth for this year, reporting strong momentum in the US and Asia. The results do not include the 2004 and 2005 sales of Ungaro, which the company sold to San Francisco entrepreneur Asim Abdullah last year. Ferragamo now has 450 points of sale, of which 221 are directly-owned stores. This year the company opened shops in Dallas and Beijing. Its two Hong Kong flagships will be enlarged. It currently derives 21 percent of its business from the European market and 26 percent from the US. Japan accounts for 27 percent of total sales, while the rest of Asia accounts for 23 percent. Ferragamo plans to open another five stores in China this year.