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Sales up by 2.3% at Salvatore Ferragamo

Feb 4, 2020 Italy
Sales up by 2.3% at Salvatore Ferragamo
The Italy-based luxury sector player released the Group’s Preliminary Consolidated Revenue for Fiscal Year 2019, which amount to 1,377 million Euros up 2.3% at current exchange rates and 1.3% at constant exchange rates
As of the 31st of December 2019, the Salvatore Ferragamo Group reported total preliminary revenue of 1 377 million euros, up by 2.3% at current exchange rates (+1.3% at constant exchange rates) which compares to 1 347 million euros recorded in the previous financial year. Revenue in the fourth quarter of 2019 registered a 2.1% increase at current exchange rates and remained stable (-0.1%) at constant exchange rates. 

Once confirmed, such performance will mean Ferragamo's annual sales register an increase for the first time since 2015. Analysts are saying the 1.3% year-over-year rise is a sign that the turnaround plan under Chief Executive Officer Micaela Le Divelec is starting to bear fruit.

Revenue by Distribution Channel
As of the 31st of December 2019, the group's retail network counted on a total of 654 points of sales, including 393 Directly Operated Stores (DOS) and 261 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 2019 the Retail distribution channel posted consolidated revenue up by 2.4% (+1.1% at constant exchange rates), with an increase of 1.1% at constant exchange rates. In the fourth quarter of 2019 retail revenue increased by 2.0% (-1.0% at constant exchange rates), with a +0.2% like-for-like performance. The Wholesale channel registered an increase in revenue of 3.1% (+3.0% at constant exchange rates) as compared to financial year 2018, mainly thanks to the good performance of the Travel Retail channel. In the last quarter of 2019 wholesale revenue was up by 2.6% at constant exchange rates.

Revenue by Geographical Area

The Asia Pacific area is once again confirmed as the group's top market in terms of revenue, increasing by 1.1% (+0.7% at constant exchange rates) compared to financial year 2018. Specifically, in the financial year 2019, the retail channel in China recorded a solid revenue growth of 13.8% (+12.6% at constant exchange rates). The performance in the area during the last quarter continued to be significantly negatively impacted by the difficult geopolitical situation occurring in Hong Kong, where retail sales were down by over 50% (compared to similar quarter in 2018).

The EMEA region posted in 2019 an increase in revenue of 5.3% (+5.1% at constant exchange rates), with a further acceleration in the fourth quarter (+9.4% at constant exchange rates) mainly thanks to the double-digit performance of the retail channel.  North America recorded a revenue increase of 0.7% (-0.6% at constant exchange rates) in fiscal 2019, with a positive performance in the last quarter of the year (+2.2% at constant exchange rates). In Central and South America revenue was up by 7.1% (+4.6% at constant exchange rates).

The Japanese market registered a 0.5% decrease in revenue (-2.8% at constant exchange rates), penalized in quarter four (-9.5% at constant exchange rates2) by the Consumption tax hike occurred in October 2019.

Revenue by Product Category

Among the product categories, at constant exchange rates, footwear and handbags and leather accessories registered increases of, respectively, 3.0% and 2.8%, while fragrances were down 7.9%.

Notes
Preliminary/Non-Audited Revenues drafted according to IAS/IFRS International Accounting Principles. Revenue at constant exchange rates are calculated by applying to the Revenue the average exchange rates of the same period 2019. The variations in Revenue are calculated at current exchange rates including the hedging effect, unless differently indicated.

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