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Ferragamo reports decreasing full year revenue

Jan 31, 2024 Italy
Ferragamo reports decreasing full year revenue
The luxury group has warned of a slowdown in luxury demand, with preliminary consolidated revenue for 2023 down by 7.6% at current exchange rates and 8.1% at constant exchange rates year-on-year
2023 has been a year of very intense work in which we made significant progress in our transition”, commented Marco Gobbetti, Chief Executive Officer and General Manager. “We progressively increased the share of our new products in the stores, enhancing communication in terms of social media response and engagement, and editorials (…). We also worked on optimizing the network and on the new store concept, that will be revealed in the Milan Women store (…). This is another fundamental step in the implementation of our strategy. We are conscious of the work ahead of us and remain confident that our strategy will unleash Ferragamo’s potential. The complex market environment with the slowdown of luxury demand may impact the timing of our initial assumptions, nevertheless, the commitment to our ambition is unchanged”, he concluded


Preliminary 2023 Results

Ferragamo’s preliminary consolidated revenue for fiscal 2023 amounted to 1.16 billion euros, reflecting a decline of 7.6% at current exchange rates and 8.1% at constant exchange rates, on a comparable basis to the previous year.

Last year, the group’s net sales from the retail distribution channel decreased by 10.8% (or 7.7% at constant exchange rates) to 824.2 million euros, as compared to 2022, “penalized by a general softening market in the last months of the year”. The wholesale channel, on the other hand, saw its net sales fall in 2023 by 12.1% (or 10.2% at constant exchange rates) year-over-year to 295.6 million euros, also as a result of the “planned rationalization of the channel”.

In 2023, the Asia Pacific region contributed 363.0 million euros to Ferragamo’s total net sales, down by 13.1% (or 8.3% at constant exchange rates), and the Japanese market added 86.6 million euros, down by 12.6% (or 3.7% at constant exchange rates), on a comparable basis to the prior year.

“In a context of general deceleration of the market”, highlighted the company, the North American region posted net sales of 316.2 million euros last year, reflecting a decrease of 19.2% (or 16.9% at constant exchange rates), as compared to the prior year. Full year net sales in Central and South America also declined by 7.1% (or 11.5% at constant exchange rates) year-over-year to 83.4 million euros, “partially impacted by a reduction of perimeter”.

The EMEA region recorded, however, an increase in net sales of 3.3% (or 3.4% at constant exchange rates) in 2023 to 270.5 million euros, as compared to 2022, “despite a reduction of the perimeter in both channels”.


Image Credits: harpersbazaar.com

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