Salvatore Ferragamo sales and profit decline in H1

Revenues at Salvatore Ferragamo of 600 million euros were down 4.8 percent or 7.2 percent at constant exchange rates in the first half period.

Gross profit increased to 72.2 percent of revenues, up 40 bps, operating profit (EBIT) of 47 million euros declined 50.8 percent, EBITDA of 134 million euros was down 25.6 percent and net profit reached 21 million euros, down 65.4 percent.

Commenting on the trading results, Marco Gobbetti, chief executive officer and general manager oa Salvatore Feragamo said: “In this first part of the year we made good progress in the execution of our strategic priorities, in line with our plans. We kept the focus on the operating improvements and brand initiatives to support a new offering that is relevant for our customer aspirations, while continuing the optimization of our retail and wholesale networks.”

Highlights of Ferragamo’s first half performance

As of June 30, 2023, the retail distribution channel posted a decrease in consolidated net sales of 5.9 percent or 4.5 percent at constant exchange rates, mainly penalised by a softening American market and selected closures planned in the context of the implementation of the strategic plan, while the performances in EMEA and Greater China were positive.

The wholesale channel registered a decrease of 13.3 percent or 14.3 percent at constant exchange rates, due to the planned rationalisation of the company’s third parties’ network, mainly in the US, and the delayed recovery of travel retail, while EMEA reported a positive performance.

Salvatore Ferragamo’s financial results across markets

The Asia Pacific registered a 12.9 percent decrease or 10.4 percent at constant exchange rates, penalised by the weak performance in Korea and in the travel retail channel, while the performance of retail in Greater China was positive.

The Japanese market registered a 11.4 percent decrease 3.8 percent at constant exchange rates, EMEA posted an increase of 10.8 percent or 10.9 percent at constant exchange, delivering a positive performance in both channels.

North America net sales decreased 17.3 percent or 18.6 percent with the wholesale channel underperforming due to the network rationalisation. Net sales in Central and South America were broadly flat, up 0.4 percent or down 7.3 percent at constant exchange rates.