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Revenue down at Ferragamo

Feb 5, 2018 / Italy
Revenue down at Ferragamo
Salvatore Ferragamo group, one of the global leaders in the luxury sector, announced preliminary consolidated revenues for 2017 amounting to 1.393 billion euros, down by 3.1% at current exchange rates
As of the 31st of December 2017, the Salvatore Ferragamo Group reported total revenue of 1.393 billion euros, down by 3.1% at current exchange rates (-1.4% at constant exchange rates) over the 1.438 billion euros recorded in the previous year. Revenue in the fourth quarter of the year registered a 8.4% decrease, penalized by the currencies trend (-5.1% at constant exchange rates) and by the lower incidence of promotional sales in the primary channel, if compared to the last year.

By the close of 2017, the group's retail network counted on a total of 685 points of sales, including 410 Directly Operated Stores (DOS) and 275 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 2017 the retail distribution channel posted consolidated revenue down by 0.8% (+1.3% at constant exchange rates), with a decrease of -1.7% at constant exchange rates and perimeter (like-for-like) vs. FY 2016.

The wholesale channel, penalized by the destocking activity, the political tensions in South Korea and the strategic rationalization in Japan, registered a decrease in revenue of 7.4% at current exchange rates (-6.2% at constant exchange rates).

The Asia Pacific area is confirmed as the group's top market in terms of revenue, decreasing by 2.1% (-0.4% at constant exchange rates2), penalized by the soft trend in South Korea, mostly due to the significant decrease of Chinese tourists, and the ongoing negative performance in particular in Hong Kong. On the contrary, the retail channel in China continued to record a solid Revenue growth of 2.5% (+7.0% at constant exchange rates2) in FY 2017.

Europe posted a decrease in revenues of 3.6% (-3.0% at constant exchange rates) compared to 2016, with a positive performance for the retail channel and a negative trend for the wholesale business, negatively impacted by the destocking activity.

North America
recorded a revenue decrease of 4.2% (-2.2% at constant exchange rates) in 2017, also negatively impacted by the department stores sales.

The Japanese market registered a 5.6% decrease (-3.1% at constant exchange rates), due to the strategic rationalization of the wholesale channel, while the retail stores recorded a positive performance at constant exchange rates.

Revenue in the Central and South America grew by 2.0% increase (+6.5% at constant exchange rates2), despite the earthquake in Mexico in September.

Among the product categories, at constant exchange rates, footwear and handbags and leather accessories posted decreases of 1.7% and 0.8%, respectively and compared to the previous year, while fragrances registered a 2.2% increase.

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