Salvatore Ferragamo Sees Revenues Fall In Q4
Salvatore Ferragamo SpA noticed preliminary 2017 revenues decline three.1 p.c to 1.34 billion euros, or $1.66 billion at present alternate, compared with 1.43 billion euros in 2016. At constant alternate rates, gross sales have been down 1.Four p.c.
Revenues in the final quarter decreased 8.4 p.c, penalized by the currencies pattern and by decrease promotional gross sales in the first personal-retail channel, thanks to better control of inventories, mentioned the Florence-based mostly group.
Associated Why Paul Andrew Was Simply Promoted at Ferragamo
As of Dec. 31, the group’s retail community comprised 685 factors of sales, together with 410 instantly operated shops and 275 third-party operated shops. Within the 12 months ended Dec. 31, the retail channel was down zero.Eight % to 905.Three million euros, representing sixty five % of whole revenues. Like-for-like gross sales at constant trade have been down 1.7 percent.
The wholesale channel, penalized by destocking exercise, the political tensions in South Korea and a strategic rationalization in Japan, decreased 7.Four p.c to 465.Three million euros.
The Asia-Pacific area was confirmed as the group’s high market, representing 36.6 % of total revenues. In the area, gross sales declined 2.1 percent to 510.6 million euros, penalized by the comfortable trend in South Korea, largely attributable to the significant decrease of Chinese language vacationers, and the continued detrimental performance specifically in Hong Kong. Conversely, the retail channel in China confirmed continued progress, posting a 2.5 % uptick, or 7 % at constant trade.
Europe was down three.6 percent to 351.2 million euros with a constructive efficiency for the retail channel and a adverse development for the wholesale business, negatively impacted by the destocking exercise.
Gross sales in North America fell four.2 % to 333.6 million euros, representing 23.9 percent of whole gross sales, additionally negatively impacted by the performance of department stores.
Japan was down 5.6 p.c to 119.5 million euros because of the strategic rationalization of the wholesale channel, whereas the retail shops showed a constructive efficiency at constant trade rates.
Revenues in Central and South America grew 2 p.c, or 6.5 percent at constant exchange, to 78.3 million, despite the earthquake in Mexico in September.
By category in the year, footwear gross sales dropped 3.6 p.c to 589.2 million euros, representing forty two.Three percent of whole sales.
Handbags and leather accessories had been down 2.Four p.c to 516 million euros, accounting for 37 percent of whole gross sales.
Gross sales of prepared-to-wear decreased 3.9 % to 89.Eight million euros, or 6.4 percent of the total. Silk and different equipment fell 7.Four % to 86.Three million euros. Fragrances had been up 1.2 p.c to 89.1 million euros.
In February, throughout Milan Vogue 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 previously women’s footwear creative director and was appointed creative director of the women’s line last October. He succeeded Fulvio Rigoni.