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Ferragamo: revenue down by 46.6%

Sep 1, 2020 Italy
Ferragamo: revenue down by 46.6%
The group's consolidated revenue was down by 46.6% in the first half of the current year. However, Ferragamo sees encouraging signs as revenue performance in July is increasing in China, Korea and Japan
As of the 30th of June 2020, the Salvatore Ferragamo Group reported total revenue of 377 million euros, down by 46.6% at current exchange rates (-46.9% at constant exchange rates), which compares to the 705 million euros recorded in the first semester in 2019. Revenue in the second quarter of 2020 registered a 60.1% decrease at current exchange rates (-59.4% at constant exchange rates). According to Ferragamo: "the drop in revenue has been determined by the rapid diffusion of the pandemic caused by a novel coronavirus, known as COVID-19 and the consequent decisions taken by the National governments regarding prohibitions and lock-downs of the commercial activities and of the international traffic, brought to the closure of the majority of the Group's store network in those countries and to a significant reduction in traffic in the remaining stores, in the period".

Revenue by Distribution Channel

As of the 30th of June 2020,  the group's retail network counted on a total of 643 points of sales, including 389 Directly Operated Stores (DOS) and 254 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 the first half of 2020 the retail distribution channel posted consolidated revenue down by 41.0% (-41.1% at constant exchange rates), with a decrease of 41.0% at constant exchange rates. In the second quarter of 2020 retail revenue decreased by 51.2% (-50.7% at constant exchange rates), with a -51.0% like-for-like performance. The wholesale channel registered a decrease in revenue of 56.4% (-56.8% at constant exchange rates) vs. the first half of 2019. In quarter two of 2020 wholesale revenue was down by 75.7% (-74.4% at constant exchange rates),  mainly penalized by the performance of the Travel Retail channel and of Fragrances.

Revenue by Geography

The Asia Pacific area is confirmed as the group's top market in terms of revenue, decreasing by 39.9% (-39.1% at constant exchange rates), compared to the first semester in 2019. The region's performance in the second quarter (-35.3% at constant  exchange rates) benefitted from the positive performance of the retail channel in China, which recorded revenue growth of 11.6% at constant exchange rates. EMEA posted a decrease in revenue of 51.7% in the first six months of the year (-51.2% at constant exchange rates), with the performance in the second quarter (-71.9% at constant exchange rates) strongly penalized by the stores closures and the lack of tourists’ flows in the period. North America recorded a revenue decrease of 54.4% (-57.8% at constant exchange rates) in the first half of the current year, with the second quarter down by 81.1%  (-83.2% at constant exchange rates) strongly penalized by the stores closures in the period. The Japanese market registered a 37.4% decrease in revenue (-39.3% at constant exchange rates) in the first semester of 2020, with the second quarter down by 56.1% (-58.4% at constant exchange rates) strongly penalized by the stores closures in the period. Revenue  in Central and South America in the first six months of the year was down by 54.6%, (-50.1% at constant exchange rates), with quarter two down by 89.2%  (-83.1% at constant exchange rates) strongly penalized by the stores closures in the period.

Product Category

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

Performance in July

According to Ferragamo, the month of July is showing an improvement in the revenue performance, compared to the previous quarter, in all the geographies. In particular, as at 25th of July the group has registered a solid growth in the directly operated stores in Mainland China, Korea and Japan, as compared to July 2019. 

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