Salvatore Ferragamo posts sales and profit growth in H1

Salvatore Ferragamo S.p.A. reported total revenues of 705 million euros (786 million dollars), up 4.6 percent at current exchange and 4.4 percent at constant exchange rates. In the second quarter, total revenues increased 4.9 percent or 4.5 percent at constant exchange rates.

The company said, profit before taxes was marginally down by 0.9 percent at 79 million euros (88 million dollars), with an incidence on revenues of 11.2 percent against 11.8 percent in the first half of 2018. The net profit for the period was 60 million euros (66.9 million dollars), a 2.4 percent increase, while the group net profit was 58 million euros (64.7 million dollars), compared to 57 million euros last year, marking an increase of 1.1 percent.

Review of Salvatore Ferragamo’s H1 performance

As of June 30, 2019, the group's retail network consisted of 661 points of sales, including 397 directly operated stores (DOS) and 264 third party operated stores (TPOS) in the wholesale and travel retail channel, as well as the presence in department stores and high-level multi-brand specialty stores. In the first half, the retail distribution channel posted consolidated revenue rise of 3.6 percent or 3.2 percent at constant exchange rates. Revenues at constant exchange rates and like-for-like increased 2.3 percent in H1 and 2.6 percent in the second quarter.

The wholesale channel registered an increase in revenues of 7.4 percent or 7.7 percent at constant exchange, with an acceleration of 8.9 percent or 8.3 percent at constant exchange in the second quarter.

Salvatore Ferragamo revenues rose across geographies

The company said, revenues in the Asia Pacific area rose by 8.1 percent or 8.4 percent at constant exchange rates in the first half with the retail channel in China reporting a 17.4 percent or 16.3 percent increase at constant exchange rates. EMEA posted an increase of 3 percent, both at current and constant exchange rates. Revenues in North America recorded stable growth, down 0.4 percent at constant exchange rates. The Japanese market registered stable revenues with a 0.5 percent rise at constant rates, while revenues in the Central and South America increased 13.4 percent or 10.3 percent at constant rates.

Among the product categories, at constant exchange rates, footwear posted an increase of 4 percent and handbags and leather accessories of 6.8 percent. The company added that fragrances rose 6.4 percent with 50 percent rise at constant exchange in the second quarter.

Gross profit increased by 5.8 percent to 457 million euros (509.7 million dollars), while the gross operating profit adjusted increased by 2.1 percent to 119 million euros (132.7 million dollars), and operating profit adjusted was down 0.4 percent vs. 1H 2018, at 85 million euros (95 million dollars).

Picture:Salvatore Ferragamo website