Global spending on luxury goods has slowed down in the last couple of years due to anti-corruption campaigns from the Chinese government, but recent earnings results for the industry indicate luxury sales are now stabilizing. Salvatore Ferragamo Italia S.p.A. (MIL:SFER), another long-term holding, saw sales grow 9.4% in the first quarter of 2015 and this is expected to accelerate as the year progresses.
From the Wasatch International Growth Fund Q2 2015 shareholder letter.