The European luxury goods market is suffering from weak demand and a credit squeeze, the chief executive of Italian fashion house Roberto Cavalli told Reuters on Friday.
"The luxury market in Europe is in evident difficulty, especially in southern Europe. Who denies this does not want to face reality," Cavalli CEO Gianluca Brozzetti told the news source, adding that he predicts 2012 to be a "difficult year."
Altagamma, Italy's luxury goods trade association, said earlier this month it expected the global sector to grow modestly in 2012 on the back of strong consumption in Asia and better prepared businesses.
But an economic slowdown in Europe that began in the final months of last year is reportedly fueling concerns about a repeat of the 2008-2009 financial crisis, when the luxury industry suffered a severe slowdown.