Companies

Ferragamo posts net sales decline

Oct 23, 2023 Italy

In the first nine months of 2023, the luxury group posted a net sales decline of 8.3% at current exchange rates or 9.2% at constant exchange rates, as compared to the same period of 2022

“In these nine months, we continued to invest in our business, making critical choices and progressing in the execution of our strategic priorities, in line with our plans. (…) The overall sales performance reflects, at this stage, the ongoing focus on quality of sales and rationalization of distribution networks, as well as the evolution of the offer and the acceleration of the transition to the new creative course, the full potential of which, will become evident in 2024”, commented Marco Gobbetti, Chief Executive Officer and General Manager of Ferragamo.

At the end of September, the Italian-based group’s sales totalled 884 million euros, reflecting a decrease of 8.3% at current exchange rates or by 9.2% at constant exchange rates, on a comparable basis to the same period of 2022.

Channel

In the first nine months of 2023, the retail distribution channel recorded a decline in its net sales of 10.2% or by 7.3% at constant exchange rates, as compared to a similar period last year, which amounted to 599.5 million euros.

Meanwhile, net sales in the wholesale channel fell by 16.6%, or by 15.3% at constant exchange rates to 217.2 million euros, “due to the planned rationalization of our third parties’ network, reduced international travel affecting the Duty-Free channel and the deceleration of the US market”.

Geographical Area

In the Asia Pacific region, Ferragamo’s net sales were down by 16.4%, or by 11.7% at constant exchange rates, in the first nine months of the current fiscal year, as compared to the same months of the previous year, amounting to 263.9 million euros. In the same period, the Japanese market posted a net sales decline of 11.6% or 2.7% at constant exchange rates year-over-year, reaching 64.4 million euros.

As of the 30^th of September, the group’s net sales in North America reached 221.1 million euros, reflecting a decrease of 20.1% or 18.2% at constant exchange rates, on a comparable basis to the same period of 2022. In Central and South America, Ferragamo’s net sales also followed a downward trajectory, falling by 3.1% or by 9.6% at constant exchange rates year-over-year to 58.8 million euros.

The EMEA region was the only one to remain in positive territory. The luxury group’s sales in this region reached 208.4 million euros in the first nine months of the year, up by 3.1% or 3.0% at constant exchange rates, as compared to a similar period in 2022.

Nevertheless, “whilst the wider market environment is increasingly uncertain, our midterm ambition is confirmed”, concluded Gobbetti.

Image Credits: fashionela.net

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