“At the end of February, the first products designed by our new creative Director, Maximilian Davis, arrived in our stores. While these represent a small portion of the overall intended collection, they are an important next step in the execution of our stated strategy of creating a new offering that is relevant to our customer aspirations and we are pleased by the early results. As the rollout of new products is at its early stages, it has not yet contributed meaningfully to the sales performance. It will not be until later in the calendar year that we will start to see the fuller appreciation of the more complete collection”, commented Marco Gobbetti, Chief Executive Officer and General Manager of Ferragamo.

First Quarter Results

In the three months to the 31^st of March, the company's revenue totalled 278 million euros, which reflects a decrease of 4.0% or 6.5% at constant exchange rates, on a comparable basis to the same period of last year.

In this first quarter, Ferragamo's net sales of the retail distribution channel were down by 2.3% (or 2.4% at constant exchange rates), as compared to a similar period in 2022, reaching 190.1 million euros, “mainly penalized by a softening US market”, but with a positive performance in the EMEA region as well as a progressive improving trend in Mainland China.

Net sales in the wholesale channel, instead, recorded a decline in net sales of 13.9% (or 16.1% at constant exchange rates), year-over-year, amounting to 80.9 million euros, thanks to the rationalization of its third parties' network, mainly in the US, and “the delayed recovery of Travel Retail in Asia Pacific”.

Then, by region, in the first quarter of the current fiscal year, the Italian-based luxury group registered in the Asia Pacific region a decrease in net sales of 13.6% (or 13.0% at constant exchange rates), while net sales in Japan dropped by 7.1% (or up by 1.2% at constant exchange rates), on a comparable basis to the same period of fiscal 2022. In North America, the company's net sales were also down by 19.8% (or 23.4% at constant exchange rates) year-over-year.

Ferragamo's performance in the EMEA and Central and South America regions in the first quarter of 2023 was, on the contrary, brighter, with net sales growing by 24.7% (or 25.0% at constant exchange rates) and 5.4% (down by 5.7% at constant exchange rates), as compared to the same period of the previous year.