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 $1.66 billion at current change, in contrast with 1.Forty three billion euros in 2016. At constant alternate rates, sales were down 1.4 %.
Revenues in the last quarter decreased 8.4 %, penalized by the currencies pattern and by lower promotional sales in the first personal-retail channel, thanks to better management of inventories, mentioned the Florence-based group.
Associated Why Paul Andrew Was Just Promoted at Ferragamo
As of Dec. 31, the group’s retail network comprised 685 factors of sales, including 410 instantly operated shops and 275 third-celebration operated stores. Within the 12 months ended Dec. 31, the retail channel was down 0.8 percent to 905.Three million euros, representing 65 % of whole revenues. Like-for-like gross sales at constant exchange had been down 1.7 p.c.
The wholesale channel, penalized by destocking exercise, 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 top market, representing 36.6 % of total revenues. In the area, gross sales declined 2.1 percent to 510.6 million euros, penalized by the mushy development in South Korea, principally due to the significant lower of Chinese vacationers, and the continued unfavorable performance specifically in Hong Kong. Conversely, the retail channel in China showed continued progress, posting a 2.5 percent uptick, or 7 p.c at constant alternate.
Europe was down three.6 % to 351.2 million euros with a optimistic efficiency for the retail channel and a damaging development for the wholesale enterprise, negatively impacted by the destocking activity.
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 p.c to 119.5 million euros as a result of strategic rationalization of the wholesale channel, whereas the retail shops showed a constructive efficiency at constant change rates.
Revenues in Central and South America grew 2 %, or 6.5 percent at fixed change, to 78.Three million, regardless of the earthquake in Mexico in September.
By category within the year, footwear sales dropped three.6 % to 589.2 million euros, representing forty two.3 % of total sales.
Handbags and leather accessories have been down 2.4 p.c to 516 million euros, accounting for 37 % of total sales.
Gross sales of prepared-to-wear decreased three.9 % to 89.Eight million euros, or 6.4 percent of the overall. Silk and other accessories fell 7.4 p.c to 86.Three million euros. Fragrances have been up 1.2 percent to 89.1 million euros.
In February, during Milan Trend 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 show will mark the rtw debut of Andrew, who was beforehand women’s footwear creative director and was appointed inventive director of the women’s line final October. He succeeded Fulvio Rigoni.