Ferragamo: sales fall in the third quarter as wholesale slumps
The Florentine fashion house generated 207 million euros in revenue from July to September, 6.2 percent less than a year earlier. Asia and wholesale were particularly weak.
Archive image · Photo: Yair Haklai / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
Salvatore Ferragamo's revenue fell in the third quarter. From July to September the Florentine fashion house generated 207 million euros, 6.2 percent less than a year earlier; at constant exchange rates the decline was 3.5 percent. Analysts had expected 209.6 million euros, according to a consensus cited by Equita. Ferragamo had still grown in the second quarter. The company cited a “particularly challenging” market backdrop with geopolitical tensions and subdued consumer sentiment over the summer, saying trends in Asia, especially China, deteriorated further.
Wholesale shrank the most: down 24.2 percent, or 19.1 percent at constant exchange rates. Ferragamo partly attributes this to a strategic optimisation of distribution quality and a stronger focus on direct-to-consumer sales. Direct-to-consumer sales accounted for 79.5 percent of revenue at the end of September. By region, quarterly revenue at constant exchange rates fell 5.2 percent in Europe, the Middle East and Africa and 11.1 percent in Asia-Pacific, while North America grew 2.4 percent.
In the first nine months Ferragamo's revenue reached 674.8 million euros, down 2.8 percent year on year; at constant exchange rates this equals a slight increase of 0.2 percent. Own retail grew 1.9 percent to 536.5 million euros over the period, while wholesale fell 15 percent to 123.4 million euros. North America was the strongest region, up 7.3 percent to 222 million euros, while Europe fell 8.6 percent and Japan 12 percent.