Ferragamo posts sales decline but confirms positive outlook

For the nine month period, the Salvatore Ferragamo Group reported revenues of 844 million euros, down 8.3 percent at current exchange and 9.2 percent at constant exchange rates, impacted by a negative perimeter effect both in retail and wholesale channels.

Commenting on the trading update, Marco Gobbetti, the company’s chief executive officer and general manager said: “The overall sales performance reflects, at this stage, the ongoing focus on quality of sales and rationalisation of distribution networks, as well as the evolution of the offer and the acceleration of the transition to the new creative course, the full potential of which, will become evident in 2024. Whilst the wider market environment is increasingly uncertain, our mid-term ambition is confirmed.”

Salvatore Ferragamo posts sales decline across distribution channels

The company said in a release that the group’s retail distribution channel posted a decrease in consolidated net sales of 10.2 percent or 7.3 percent at constant exchange for the period under review, also penalised by a general softening market in the third quarter.

The wholesale channel registered a decrease of 16.6 percent or 15.3 percent at constant exchange, due to the planned rationalisation of the company’s third parties’ network, reduced international travel affecting the duty-free channel and the deceleration of the US market.

Salvatore Ferragamo sees drop in sales across markets except EMEA

The company added that Asia Pacific registered a 16.4 percent decrease or 11.7 percent at constant exchange with the Japanese market registering an 11.6 percent decrease or 2.7 percent decrease at constant exchange rates.

EMEA posted an increase in net sales of 3.1 percent or 3 percent at constant exchange, North America recorded a net sales decrease of 20.1 percent or 18.2 percent at constant exchange and net sales in Central and South America were down 3.1 percent or 9.6 percent at constant exchange rates.