Ferragamo sales drop in 2023

Salvatore Ferragamo reported preliminary revenues of 1.157 million euros, down 7.6 percent at current exchange rates and down 8.1 percent at constant exchange for fiscal 2023.

Commenting on the trading update, Marco Gobbetti, chief executive officer and general manager of the company said: “We are conscious of the work ahead of us and remain confident that our strategy will unleash Ferragamo’s potential. The complex market environment with the slowdown of luxury demand may impact the timing of our initial assumptions, nevertheless the commitment to our ambition is unchanged.”

In FY23, the company’s retail distribution channel posted a consolidated net sales decrease of 10.8 percent or 7.7 percent at constant exchange, penalised by a general softening market in the last months of the year mainly impacting off-price sales. The wholesale channel registered a decrease of 12.1 percent or 10.2 percent at constant exchange due to the planned rationalisation of the channel.

The company said, its Asia Pacific registered a 13.1percent or 8.3 percent decrease at constant exchange in net sales. In the fourth quarter net sales at constant exchange rates reported a positive trend, with wholesale positive and retail sales in Greater China up double-digit. The Japanese market registered a 12.6 percent decrease or 3.7 percent decline at constant exchange against FY22.

EMEA posted an increase in net sales of 3.3 percent or 3.4 percent at constant exchange, despite a reduction of the perimeter in both channels. In the fourth quarter net sales at constant exchange rates increased 4.8 percent.

North America recorded a net sales decrease of 19.2 percent or 16.9 percent at constant exchange, while net sales in Central and South America were down 7.1 percent or 11.5 percent at constant exchange.