Salvatore Ferragamo posts sales decline in Q1

For the first quarter, the Salvatore Ferragamo Group reported revenues of 278 million euros down 4 percent at current exchange and down 6.5 percent at constant exchange rates.

The company’s retail distribution channel posted a decrease in first quarter net sales of 2.3 percent or 2.4 percent at constant exchange rates, mainly penalised by a softening US market, while EMEA recorded positive performance and a progressively improving trend in China, with Mainland Chinese customers also driving the recovery in Hong Kong.

Commenting on the results, Marco Gobbetti, the company’s chief executive officer and general manager said: “At the end of February, the first products designed by our new creative director, Maximilian Davis, arrived in our stores. As the roll out of new products is at its early stages, it has not yet contributed meaningfully to the sales performance. It will not be until later in the calendar year that we will start to see the fuller appreciation of the more complete collection.”

The company said in a release that the wholesale channel registered a decrease in net sales of 13.9 percent or 16.1 percent at constant exchange rates due to the planned rationalisation of third parties’ network, mainly in the US, and the delayed recovery of travel retail in Asia Pacific, while EMEA reported a positive trend.

The Asia Pacific registered a 13.6 percent decrease or 13 percent at constant exchange rates due to the softness of the travel retail channel, while the performance of retail in Greater China was positive. The Japanese market declined by 7.1 percent but increased sales by 1.2 percent at constant exchange rates. EMEA posted an increase of 24.7 percent or 25 percent at constant exchange rates, delivering a positive performance in both channels.

North America recorded a decrease of 19.8 percent or 23.4 percent at constant exchange rates. Net Sales in Central and South America were up 5.4 percent but dropped 5.7 percent at constant exchange rates.