• Home
  • News
  • Business
  • Ferragamo: Q1 revenues decline 1.7 percent to 304 mn euros

Ferragamo: Q1 revenues decline 1.7 percent to 304 mn euros

By Prachi Singh

loading...

Scroll down to read more

Business

As of March 31, 2018, the Salvatore Ferragamo Group reported total revenues of 304 million euros (362 million dollars) down 1.7 percent at current constant exchange rate. The profit before taxes amounted to 15 million euros (17.8 million dollars) down 5.3 percent, with an incidence on revenues of 4.8 percent against 5 percent in 1Q2017.

Net profit for the period, including the minority interest, was 9 million euros (10.7 million dollars), an 18.8 percent decrease. The first quarter group net profit was 9 million euros (10.7 million dollars), compared to 12 million euros (14.2 million dollars) in the first quarter last year, a decrease of 26.3 percent.

Highlights of Ferragamo’s results through retail channels

As of 31 March 2018, the Group's Retail network counted on a total of 678 points of sales, including 406 directly operated stores (DOS) and 272 third party operated stores (TPOS) in the wholesale and travel Retail channel, as well as the presence in department stores and multi-brand specialty stores. In the first quarter, the retail distribution channel posted consolidated revenues down 3.6 percent but stable at constant exchange rates, showing a 0.3 percent at constant exchange rates and like-for-like sales growth.

The wholesale channel, registered an increase in revenues of 2.6 percent at current exchange and 5.9 percent at constant exchange rates, with the travel retail channel reporting a double- digit growth.

The Asia Pacific region, the group's top market in terms of revenues, reported rise of 1.2 percent or 4.6 percent at constant exchange rates. The retail channel in China, after a very strong first quarter with growth of 18.1 percent last year at constant exchange rates, recorded a stable revenue performance in the first quarter of 2018 at constant exchange rates, while the trend in Hong Kong showed a 34.1 percent increase at constant exchange rates against a 5.3 percent decrease in Q1 2017. South Korea continued to show a weak trend, mostly due to the significant decrease of Chinese tourists and the rationalization of the store network.

Europe posted a 1.4 percent or 1.9 percent increase at constant exchange rates due to the positive performance of the wholesale channel. Revenues in North America decreased 6.1 percent, penalized by the currency trend. At constant exchange, revenues rose 2.4 percent. The retail channel registered a double-digit growth at constant exchange rates, while the wholesale channel continued to show a negative trend still negatively impacted by the department stores sales. The Japanese market registered a 6.3 percent or 8 percent decrease at constant exchange rates due to the strategic rationalization of the wholesale channel.

Revenues in the Central and South America were down 8.3 percent or 1.4 percent at constant exchange.

Ferragamo posts gross profit decline of 1.6 percent

Among the product categories, at constant exchange rates, footwear posted a decrease of 1.6 percent, while handbags and leather accessories showed a 6.8 percent increase and fragrances registered a 12.7 percent increase.

Gross profit decreased by 3.6 percent to 189 million euros (225 million dollars). Its incidence on revenues was down 130 basis points, moving to 62.3 percent from 63.6 percent of 1Q 2017, due to the unfavourable channel mix and the negative impact of currencies. EBITDA decreased by 1.9 percent to 32 million euros (38 million dollars), with a stable incidence on revenues of 10.7 percent. EBIT was stable at positive 0.3 percent to 17 million euros (20.2 million dollars).

Picture:Salvatore Ferragamo group website

MULTIMEDIA
Salvatore Ferragamo