February 28, 2018 / 8:53 AM / a year ago

Shares in Italy's Ferragamo rise 4 percent after news of CEO's departure

Italian luxury fashion house Salvatore Ferragamo's logo is seen at the flagship in Rome, Italy, February 18, 2016. REUTERS/Stefano Rellandini/File Photo

MILAN (Reuters) - Shares in Salvatore Ferragamo rose more than 4 percent on Wednesday after the Italian luxury goods maker said Eraldo Poletto would step down from his position as chief executive, after less than two years in the job.

The decision comes after the Florence-based company, which is aiming to make its brand more contemporary and appealing, particularly among younger customers, said in December that it could not confirm its medium-term targets.

Since launching an ambitious new strategy in February last year the group has seen its core profit margins fall year-on-year, severely hit by a planned clearance of inventory products.

Having to appoint a new chief executive “could be a potential medium term positive”, Exane BNP Paribas said.

Shares were up 4.1 percent at 23.57 euros by 0838 GMT, outperforming a 0.4 percent fall in Milan’s blue-chip index.

Reporting by Agnieszka Flak

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