Salvatore Ferragamo Sees Revenues Fall In Q4
Salvatore Ferragamo SpA noticed preliminary 2017 revenues decline 3.1 p.c to 1.34 billion euros, or $1.Sixty six billion at current exchange, in contrast with 1.Forty three billion euros in 2016. At constant change rates, sales were down 1.4 %.
Revenues within the last quarter decreased 8.Four p.c, penalized by the currencies development and by lower promotional sales in the first own-retail channel, thanks to raised control of inventories, mentioned the Florence-based group.
Associated Why Paul Andrew Was Just Promoted at Ferragamo
As of Dec. 31, the group’s retail community comprised 685 factors of sales, together with 410 straight operated shops and 275 third-occasion operated stores. In the 12 months ended Dec. 31, the retail channel was down zero.8 percent to 905.Three million euros, representing sixty five % of complete revenues. Like-for-like sales at constant trade had been down 1.7 %.
The wholesale channel, penalized by destocking activity, the political tensions in South Korea and a strategic rationalization in Japan, decreased 7.Four percent to 465.3 million euros.
The Asia-Pacific area was confirmed because the group’s top market, representing 36.6 percent of complete revenues. In the area, sales declined 2.1 percent to 510.6 million euros, penalized by the smooth pattern in South Korea, mostly resulting from the numerous lower of Chinese vacationers, and the ongoing negative performance particularly in Hong Kong. Conversely, the retail channel in China showed continued growth, posting a 2.5 p.c uptick, or 7 percent at constant change.
Europe was down three.6 % to 351.2 million euros with a positive performance for the retail channel and a damaging development for the wholesale enterprise, negatively impacted by the destocking activity.
Sales in North America fell 4.2 percent to 333.6 million euros, representing 23.9 percent of total 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, while the retail shops showed a optimistic performance at constant change rates.
Revenues in Central and South America grew 2 p.c, or 6.5 percent at constant trade, to 78.3 million, regardless of the earthquake in Mexico in September.
By category within the year, footwear gross sales dropped 3.6 p.c to 589.2 million euros, representing forty two.Three percent of total sales.
Handbags and leather equipment have been down 2.Four percent to 516 million euros, accounting for 37 percent of total gross sales.
Sales of ready-to-wear decreased three.9 percent to 89.Eight million euros, or 6.Four percent of the full. Silk and different accessories fell 7.4 % to 86.3 million euros. Fragrances had been up 1.2 p.c to 89.1 million euros.
In February, during Milan Vogue Week, Ferragamo will hold a coed runway present 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 inventive director of the women’s line final October. He succeeded Fulvio Rigoni.