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Ferragamo: consolidated revenue down by 33.5%

Feb 3, 2021 Italy
Ferragamo: consolidated revenue down by 33.5%
The Florence-based group has announced preliminary consolidated revenue figures for financial year 2020. Ferragamo's consolidated revenue was down by 33.5% in 2020
As of the 31th of December 2020 the Salvatore Ferragamo Group reported total revenue of 916 million euros, down by 33.5% at current exchange rates (-33.4% at constant exchange rates). Revenue in the fourth quarter (improving compared to the 9 months 2020) registered a 20.4% decrease at current exchange rates (-19.9% at constant exchange rates). The drop in revenue in financial year (FY) 2020 has been determined by the rapid diffusion of the COVID-19 pandemic and the consequent decisions regarding restriction of movements and lockdowns. "The consequent closure of the majority of the group's store network in those countries and the significant reduction in traffic in the remaining stores, negatively impacted the results of the first six months of the year, that registered a progressive improvement, with alternating phases linked to the second wave of the pandemic and the consequent restrictions, in the second part on the year".


Distribution Channel

By the end of 2020, the group's retail network counted on a total of 644 points of sales, including 395 Directly Operated Stores (DOS) and 249 Third Party Operated Stores (TPOS) in the Wholesale and Travel Retail channel, as well as the presence in Department Stores and high-level multi-brand Specialty Stores.

In FY 2020 the retail distribution channel posted consolidated revenue down by 29.2% (-28.6% at constant exchange rates), with a decrease of 29.9% at constant exchange rates and like-for-like FY 2019. In quarter four (Q4) retail revenue decreased by 13.7% (-13.2% at constant exchange rates), with a -16.4% like-for-like performance and the contribution of the e-commerce channel registering a strong acceleration (+61.1% at constant exchange rates). The wholesale channel registered a decrease in revenue of 41.7% (-42.2% at constant exchange rates), compared to FY 2019, mainly penalized by the performance of the Travel Retail channel and of Fragrances. In the last three months of 2020 Wholesale revenue was down by 33.8% (-32.9% at constant exchange rates). 

Geography

Asia Pacific is confirmed as the group's top market in terms of revenue, decreasing by 25.5% (-25.0% at constant exchange rates) vs. FY 2019. The performance in the last quarter of the year (-11.2% at constant exchange rates) was negatively impacted by the performance of the Wholesale channel especially of the Travel Retail. The retail channel in China, in Q4, registered a revenue increase of 33.9% at constant exchange rates bringing the FY performance to a +11.3% at constant exchange rates compared to FY 2019. Directly Operated Stores in Korea registered revenue increase. Retail revenue was in line with FY 2019, supported by double-digit increase registered in the second part of 2020 that compensated the negative performance of the first six months. The Japanese market registered a 24.5% decrease in revenue (-25.0% at constant exchange rates) in FY 2020, with Q4 (-6.7% at current exchange rates and -7.4% at constant exchange rates) benefitting from the positive performance of the Retail channel (+2.9% at current exchange rates and +1.3% at constant exchange rates). Overall, the Asian continent represents over 50% of total group’s FY 2020 revenue.

EMEA posted, in FY 2020, a decrease in revenue of 42.5% (-41.9% at constant exchange rates), with Q4 (-34.0% at constant exchange rates) still strongly penalized by the stores closures and the lack of tourists’ flows in the period.

North America recorded revenue decrease of 39.4% (-41.4% at constant exchange rates) in FY 2020, with the fourth quarter down by 26.6% (-27.5% at constant exchange rates). 

Revenue in the Central and South America was down 35.6%, (-29.5% at constant exchange rates).

Product Category

All product categories, at constant exchange rates, reported a decrease in FY  2020 compared to the same period of last year.

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