Ferragamo to cut store openings

Salvatore Ferragamo SpA, whose shoes have been worn by Greta Garbo and Marilyn Monroe, plans to reduce store openings by half this year as the global recession hurts demand for luxury goods.

The company plans to open about 20 stores this year, compared with about 45 in 2008, Chief Executive Officer Michele Norsa said in an interview. As recently as September, Norsa said he planned to keep store growth for the Florence, Italy-based company at the same level as last year.

Luxury-goods makers are cutting costs to protect profitability, with LVMH Moet Hennessy Louis Vuitton SA canceling a planned flagship Tokyo store and Bulgari SpA halting all store openings beyond the 12 planned for this year. Sales for the 175 billion euro ($234 billion) luxury goods industry may slide between 3 percent and 7 percent this year, excluding currency movements, consulting firm Bain & Co estimated in October.