Salvatore Ferragamo FY revenue up 10 percent, but profits narrow

Salvatore Ferragamo has reported a drop in profit in its most recent full-year results despite a 10.2 percent increase in revenue.

Net profit at the Italian luxury group came in at 65 million euros in 2022, down from 81 million euros a year earlier.

That came despite group revenue increasing 10.2 percent to 1.25 billion euros. At constant exchange rates, revenue was up 5.7 percent.

Breaking it down by channel, consolidated retail revenue rose 11.3 percent, while wholesale revenue increased 13.6 percent.

In terms of regions, the strongest sales growth was reported in Central and South America, up 29.7 percent on the prior year, followed by EMEA, where sales rose 24.7 percent, and North America, where sales grew 22.3 percent.

China restrictions impact sales

Like many luxury businesses at the moment, the company didn’t do so well in the Asia Pacific region, where a sales decrease of 4.7 percent was largely attributed to Covid-related restrictions in Mainland China.

That being said, sales in Japan grew 11.9 percent during the year.

The company added that all main product categories saw a “significant” year-on-year increase in sales, with shoes and leather categories representing 87 percent of net sales in the period.

Chief executive and general manager Marco Gobbetti told investors: “In 2022, we defined our strategic framework and made excellent progress on the implementation of our priorities.

“We pursued the quality of sales and significantly increased investments, especially in marketing and communication, and are pleased with the results achieved.”

Looking at more recent trading, Gobbetti said the group is “encouraged” by both the early results of its SS23 collection and its recent FW23 show.

“Although the macroeconomic environment remains volatile and complex, we are excited by the potential of Ferragamo and will continue to invest behind our growth ambition,” Gobbetti said.