Shares in Italian luxury label Salvatore Ferragamo surged on Friday, after the company reported strong earnings that defied worries about China, but the CEO warned the market still remains volatile.
Ferragamo stock was up 7.3 percent by mid-morning, after the brand reported earnings before interest, tax, depreciation and amortization (EBITDA) of 143 million euros ($188.5 million) in the first half of the year, up 9 percent against the same period last year.
The luxury retailer defied concerns over a broader slowdown in the China market by posting 15 percent revenue growth in the second quarter for the world's second largest economy. The Asia Pacific region brings in nearly 38 percent of the company's revenue.
China still 'volatile'
But the Ferragamo boss warned that despite an improving picture in China, the market remains uncertain in the short term.
"Regarding China, it's still very volatile. From week to week you see differences but the medium- to long-term perspective is definitely very positive," Michele Norsa, CEO of Ferragamo, told CNBC in a TV interview.
"We have a slowdown of travellers towards Hong Kong. But it is probably related to (a) temporary situation."
China has been a concern for luxury retailers over the past year after the government announced a crackdown on gifting and bribing of top officials. This led to warnings from cognac makers and watch makers as well as concerns from the likes of LVMH.