Versace: "sales are improving"

Santo Versace, co-chairman of Italian fashion House Gianni Versace, said the worst is over for the luxury-goods industry and demand is beginning to improve. "We already have the first signs of a recovery," Mr. Versace said. "By the last quarter of this year or the beginning of next year we will have the signs of a strong rebound." The luxury-goods industry is just beginning to recover after a worldwide economic slump that led shoppers to forgo purchases of designer clothes, handbags and jewellery.

Rival Gucci Group and Louis Vuitton said earlier they expect to see a second-half improvement in demand for luxury items. Analysts don't expect to see a full rebound until next year as wealthy shoppers, especially from Japan, wait for economies to improve before resuming high-ticket purchases.