Ferragamo H1 revenue up 20 percent, profits widen

Italian luxury label Salvatore Ferragamo has reported an increase in revenue and profit in the first half of the year despite “the enduring impact of the pandemic in China”.

In the six months to June 30, revenue at the Florence-based brand came in at 630 million euros, up 20.3 percent year-over-year, or up 17 percent on a constant currency basis.

Breaking it down by geography, sales in Asia Pacific were down 1.5 percent due to the ongoing Covid restrictions in China.

All other markets, however, registered growth in the period, with sales in Japan up 28 percent, EMEA up 45.8 percent, North America up 41.6 percent, and Central and South America up 44.2 percent.

CEO and general manager Marco Gobbetti said the board was “pleased with the continued growth of revenues and profitability in the second quarter, despite the enduring impact of the pandemic in China”.

Breaking it down by channel, retail sales increased 16.5 percent and wholesale sales grew 40.9 percent.

Profits widen at Salvatore Ferragamo

Net profit in the first half jumped to 62 million euros from 33 million euros a year earlier.

Gobbetti continued: “We made excellent progress on our strategic priorities and will accelerate our investment in the second half of the year, as planned, to build strength in platforms and regions to support our growth agenda, whilst remaining mindful of the more volatile and challenging macroeconomic backdrop.”

He added that the group’s recently announced partnership with luxury fashion retailer Farfetch “provides us with a strong platform of technical capabilities and target audience to fuel our digital growth ambition”.

Salvatore Ferragamo and Farfetch announced their tie-up last month, which would see the former leveraging the latter’s platform to accelerate its digital capabilities and help it engage with a Millennial and Gen Z luxury audience.

Gobbetti said at the time: “Farfetch is the leading digital platform in luxury fashion and represents the ideal partner to further boost Ferragamo’s omnichannel innovation, fuelling our plans to reach new, younger audiences and accelerate our growth.”