September 28, 2023

Gross sales at Italian luxurious group Salvatore Ferragamo declined by 6.5 % at fixed trade charges within the first quarter, hit by a slowdown within the US market, the corporate stated on Thursday.

Revenues totalled €278 million ($305 million), broadly consistent with analyst expectations of €280 million, in keeping with a Refinitiv consensus.

On the finish of February, the primary merchandise designed by the brand new artistic director, Maximilian Davis, arrived within the group’s shops.

Nevertheless, they’ve “not but contributed meaningfully to the gross sales efficiency”, chief govt Marco Gobbetti stated in an announcement.

Gross sales in North America fell by 23.4 % within the quarter, primarily because of the rationalisation of the distribution community, whereas they posted an enhancing development in China.

The Covid-19 pandemic disaster has hit family-owned Ferragamo simply as the corporate was striving to rejuvenate its historic model, well-known for the sneakers worn by Hollywood stars reminiscent of Audrey Hepburn.

Gobbetti, who joined in early 2022 from Burberry, has promised a fast turnaround, vowing to extend investments, revamp shops and appeal to youthful prospects to double 2021 revenues to virtually €2.3 billion by 2026.

“We stay assured in our plans and ensure our mid-term ambition”, he stated within the post-results convention name with analysts.

Analysts define that quarterly gross sales are nonetheless extremely uncovered to the outdated assortment and the wholesale channel the group goals to streamline.

“The outcomes should not significant for assessing the potential of the brand new product providing,” Intesa Sanpaolo analysts stated within the financial institution’s each day report.

Davis was appointed artistic director in March final yr as a part of the brand new CEO’s plans to revamp the model.

By Claudia Cristoferi, Editor Federico Maccioni

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