Salvatore Ferragamo FY16 revenues rise 1 percent

Salvatore Ferragamo’s preliminary consolidated revenues for the fiscal year 2016 amounted to 1,438 million euros (1, 550 million dollars), representing a rise of 1 percent at current exchange rates but decline of 2 percent at constant exchange rates against FY15.

Revenues, in 4Q reported a 4 percent growth or 1 percent at constant exchange rates. The company said, the positive development is confirmed also by the further acceleration of the retail channel sales in January 2017.

Asia Pacific showcases positive growth

The Asia Pacific area, representing 36 percent of total in FY 2016, increased by 1 percent. In 4Q 2016 the growth was over 4 percent after 8 percent rise reported in 4Q 2015. The company said, positive performance was achieved despite the still weak business in Hong Kong, which remained negative. The retail business registered a decrease of 13 percent in Q4 at constant exchange rates. The retail channel in China recorded revenue increase of 6 percent at constant exchange rates in FY 2016, with 13 percent rise at constant exchange rates in the fourth quarter.

Revenues in Europe decreased 4 percent in FY 2016, penalized by lower tourist flows. In 4Q the decrease was 2 percent. North America, the company said, despite the strong currency that also negatively impacted tourist flows in the United States, registered an increase in revenues of over 4 percent in FY 2016 with a 2 percent decline at constant exchange rates. In 4Q revenues increased 7 percent or 2 percent at constant exchange rates, on the back of 10 percent rise in retail business.

The Japanese market reported stable revenues in FY16, but up 3 percent in 4Q. Revenues in Central and South America showed an increase of 6 percent in FY16, with an acceleration in 4Q of 12 percent. At constant exchange rates, revenues rose 16 percent in FY 2016 and 23 percent in 4Q 2016.

Retail revenues up 2 percent in FY16

As of December 31, 2016, the Group's network totalled 683 points of sale, and could count on 402 Directly Operated Stores (DOS), while the wholesale and travel retail channel included 281 third party operated stores (TPOS), as well as the presence in department stores and high-level multi-brand specialty stores.

In FY 2016 the retail distribution channel posted consolidated revenue increase of over 2 percent and 5 percent in 4Q 2016). At constant exchange rates, the trend was negative by 1percent in FY 2016, but positive by over 2 percent in 4Q 2016.

The wholesale channel delivered a 2 percent decrease, mainly penalized by the negative performance of the US market, but 4Q 2016 showed a positive trend with an increase of 3 percent.

Among the product categories, shoes registered revenue rise of 2 percent in FY 2016, while handbags and leather accessories showed a stable trend. Fragrances revenues were stable in FY 2016, with a further improvement in 4Q 2016 of 11 percent.

Picture:Salvatore Ferragamo