Salvatore Ferragamo Sees Revenues Fall In Q4
February 20, 2018
Salvatore Ferragamo SpA saw preliminary 2017 revenues decline 3.1 percent to 1.34 billion euros, or $1.66 billion at present change, compared with 1.Forty three billion euros in 2016. At fixed trade charges, sales had been down 1.4 percent.
Revenues in the last quarter decreased 8.Four percent, penalized by the currencies development and by decrease promotional sales in the first own-retail channel, thanks to raised management of inventories, stated the Florence-primarily based group.
Associated Why Paul Andrew Was Just Promoted at Ferragamo
As of Dec. 31, the group’s retail network comprised 685 factors of sales, together with 410 directly operated stores and 275 third-party operated shops. Within the 12 months ended Dec. 31, the retail channel was down zero.8 % to 905.Three million euros, representing sixty five % of total revenues. Like-for-like sales at constant alternate were down 1.7 percent.
The wholesale channel, penalized by destocking exercise, the political tensions in South Korea and a strategic rationalization in Japan, decreased 7.4 % to 465.Three million euros.
The Asia-Pacific area was confirmed as the group’s prime market, representing 36.6 p.c of total revenues. Within the region, gross sales declined 2.1 percent to 510.6 million euros, penalized by the gentle development in South Korea, mostly resulting from the significant lower of Chinese language vacationers, and the ongoing destructive efficiency in particular in Hong Kong. Conversely, the retail channel in China showed continued progress, posting a 2.5 % uptick, or 7 % at fixed change.
Europe was down 3.6 % to 351.2 million euros with a positive performance for the retail channel and a unfavorable trend for the wholesale business, negatively impacted by the destocking activity.
Gross sales in North America fell 4.2 p.c to 333.6 million euros, representing 23.9 p.c of total gross sales, additionally negatively impacted by the efficiency of shops.
Japan was down 5.6 percent to 119.5 million euros because of the strategic rationalization of the wholesale channel, while the retail shops confirmed a optimistic performance at constant exchange charges.
Revenues in Central and South America grew 2 percent, or 6.5 % at fixed exchange, to 78.Three million, despite the earthquake in Mexico in September.
By category in the yr, footwear gross sales dropped 3.6 % to 589.2 million euros, representing forty two.3 percent of whole sales.
Handbags and leather accessories have been down 2.4 p.c to 516 million euros, accounting for 37 % of total sales.
Sales of prepared-to-put on decreased three.9 % to 89.Eight million euros, or 6.Four % of the overall. Silk and other accessories fell 7.Four percent to 86.Three million euros. Fragrances have been up 1.2 p.c to 89.1 million euros.
In February, throughout Milan Trend Week, Ferragamo will hold a coed runway show to unveil its men’s and women’s fall 2018 collections, designed by Guillaume Meilland and Paul Andrew, respectively. The present will mark the rtw debut of Andrew, who was beforehand women’s footwear creative director and was appointed artistic director of the women’s line final October. He succeeded Fulvio Rigoni.