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Ferragamo with 4% increase in revenue

Aug 13, 2019 Italy
Ferragamo with 4% increase in revenue
The Italy-based luxury group has announced first half results. Asia Pacific was confirmed as the group's top market. Other regions with mixed results in the period

Consolidated Revenue

As of the 30th of June 2019, the Salvatore Ferragamo Group reported total revenue of 705 million euros, up by 4.6% at current exchange rates and 4.4% at constant exchange rates. This compares to 674 million euros recorded in the first half of 2018. In teh second quarter of the current fiscal year, total revenue recorded an increase of 4.9% (+4.5% at constant exchange rates).

Revenue by distribution channel

As of the 30th of June 2019, Ferragamo's retail network counted on a total of 661 points of sales, including 397 Directly Operated Stores (DOS) and 264 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 2019 the Retail distribution channel posted consolidated revenue up by 3.6% (+3.2% at constant exchange rates), with the second quarter of 2019 trend in line with the previous quarter. Revenue at constant exchange rates and perimeter (like-for-like) registered in the first six months of 2019 an increase of +2.3% (+2.6% in 2Q 2019), despite the negative performance of the secondary channel. The Wholesale channel registered an increase in Revenue of 7.4% (+7.7% at constant exchange rates), with an acceleration in the second quarter 2019 (+8.9% at current exchange rates and +8.3% at constant exchange rates).

Revenue by geographical area

The Asia Pacific area is confirmed as the group's top market in terms of revenue, increasing by 8.1% (+8.4% at constant exchange rates3) when compared to similar period in 2018. To highlight, the solid performance of the retail channel in the period, China reported a 17.4% increase (+16.3% at constant exchange rates). In the same period, EMEA posted an increase in revenue of 3.0%, both at current and constant exchange rates, with a positive performance in both distribution channels and North America recorded stable Revenues (-0,4% at constant exchange rates3). The Japanese market also registered stable Revenues (+0,5%, at constant rates) and Central and South America registered an increase of 13.4% (+10.3% at constant rates).


Revenue by product category

Among the product categories, at constant exchange rates3, footwear posted an increase of 4.0% and handbags and leather accessories of 6.8% vs. 1H 2018. Fragrances registered a 6.4% increase, thanks to a strong performance in 2Q 2019 (+50.0% at constant rates3) due to a different timing in the deliveries vs. the same period of last year.

Gross Profit

In the first half of 2019 Gross Profit increased by 5.8% totalling 457 million euros.

Net Profit

Net Profit for the period was 60 million euros, marking a 2.4% increase, when compared to the 59 million euros reported in the first half of 2018. The first semester 2019 group Net Profit was 58 million euros, compared to 57 million euros in similar period in 2018, marking an increase of 1.1%.

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