Salvatore Ferragamo Sees Revenues Fall In Q4
Salvatore Ferragamo SpA saw preliminary 2017 revenues decline three.1 p.c to 1.34 billion euros, or $1.Sixty six billion at current exchange, compared with 1.Forty three billion euros in 2016. At constant exchange charges, gross sales have been down 1.Four percent.
Revenues in the last quarter decreased eight.Four percent, penalized by the currencies development and by lower promotional sales in the primary own-retail channel, thanks to raised control of inventories, stated the Florence-based group.
Related Why Paul Andrew Was Just Promoted at Ferragamo
As of Dec. 31, the group’s retail community comprised 685 points of gross sales, including 410 immediately operated shops and 275 third-party operated stores. In the 12 months ended Dec. 31, the retail channel was down zero.8 % to 905.3 million euros, representing 65 p.c of complete revenues. Like-for-like sales at fixed trade had been down 1.7 percent.
The wholesale channel, penalized by destocking activity, the political tensions in South Korea and a strategic rationalization in Japan, decreased 7.4 percent to 465.3 million euros.
The Asia-Pacific space was confirmed because the group’s high market, representing 36.6 p.c of whole revenues. Within the area, gross sales declined 2.1 percent to 510.6 million euros, penalized by the gentle pattern in South Korea, largely attributable to the significant decrease of Chinese vacationers, and the continued unfavourable performance particularly in Hong Kong. Conversely, the retail channel in China confirmed continued growth, posting a 2.5 % uptick, or 7 % at fixed trade.
Europe was down 3.6 percent to 351.2 million euros with a optimistic performance for the retail channel and a destructive pattern for the wholesale business, negatively impacted by the destocking exercise.
Gross sales in North America fell 4.2 % to 333.6 million euros, representing 23.9 p.c of total gross sales, also negatively impacted by the efficiency of department shops.
Japan was down 5.6 percent to 119.5 million euros due to the strategic rationalization of the wholesale channel, while the retail shops showed a optimistic efficiency at constant alternate charges.
Revenues in Central and South America grew 2 percent, or 6.5 p.c at fixed alternate, to 78.3 million, despite the earthquake in Mexico in September.
By class within the 12 months, footwear sales dropped three.6 % to 589.2 million euros, representing 42.3 % of total gross sales.
Handbags and leather-based equipment have been down 2.Four % to 516 million euros, accounting for 37 percent of whole gross sales.
Sales of ready-to-wear decreased three.9 percent to 89.8 million euros, or 6.4 p.c of the total. Silk and different equipment fell 7.4 p.c to 86.Three million euros. Fragrances have been up 1.2 percent to 89.1 million euros.
In February, throughout Milan Style Week, Ferragamo will hold a coed runway show to unveil its men’s and women’s fall 2018 collections, designed by Guillaume Meilland and Paul Andrew, respectively. The present will mark the rtw debut of Andrew, who was beforehand women’s footwear artistic director and was appointed inventive director of the women’s line final October. He succeeded Fulvio Rigoni.